QBE CEO Frank O’Halloran has spent much of this year hinting at plans to gain a bigger foothold in the Asian general insurance market. Last week market whispers became a reality with the group announcing it will take over Zurich Financial Services’ Singapore operations.

No one has disclosed the cost of the deal, which is subject to the approval of the Singapore authorities. All the companies will say is that the acquisition process is expected to be completed by the end of June. Last year Zurich’s Singapore business had gross written premiums of nearly $50 million.

Mr O’Halloran says the purchase is in line with QBE’s long-term growth objectives, and will be paid for from existing surplus funds in Asia.

“This acquisition meets QBE’s acquisition criteria and is in accordance with QBE’s strategy to grow our business in Asia, particularly in markets such as Singapore where we see the potential for improved results,” he said.

Zurich has been selling non-core businesses over the past 18 months following a strategy recovery plan that followed a record $5.4 billion loss in 2002.