QBE has its eye on the local regional market to buy small general insurance businesses, and may already be engaged in purchase negotiations, according to a report from New York.

Reactions magazine, covering the International Insurance Society seminar held in New York last week, says CEO Frank O’Halloran wants QBE to be more diversified in Australasia.

The company wants to make small acquisitions that are easily integrated into QBE’s businesses, the magazine said, quoting Mr O’Halloran: “We have a couple of acquisitions on our plate. They are likely to be bolted on to our existing operations.” QBE recently bought most of the renewal rights to Gerling Australia’s insurance portfolio.

The Sydney-based company is now the largest supplier of managing capacity at Lloyd’s and the second-largest capacity provider at the market, and Mr O’Halloran told Reactions that this is enough. “We are happy with the progress of the businesses there.”

The need to acquire more business in the Australasian market was explained as a need to balance QBE’s business. The group now has 75% of its business overseas – 32% for Lloyd’s and 28.3% for Europe, according to Mr O’Halloran – and there is a need for more balance with additional southern hemisphere business.

He also told the magazine that expansion in the US is also possible, with the Americas representing only 12% of the company’s gross earned premiums. But it would be achieved by buying teams of people and portfolios rather than existing businesses.

Mr O’Halloran also told Reactions QBE is committed to remaining in reinsurance, “but he does not expect reinsurance to be more than 25% of QBE’s global business”.