Australia-based QBE Insurance Group has reached an agreement to divest its Australian travel insurance business to health insurer nib holdings limited (nib) for an undisclosed sum.
Under the terms of the deal, nib will absorb all 150 staff of the acquired entity.
nib offers health and medical insurance to more than one million Australian and New Zealand residents. The company also manages World Nomads Group, Australia’s third largest global travel insurance distributor.
QBE said that the decision to offload was taken after an extensive review of QBE Travel and its alignment to company’s strategic priorities.
QBE Australia and New Zealand CEO Vivek Bhatia said that the move was consistent with the insurer’s approach to building a stronger and simpler QBE.
“While we’re proud of our long history in this market and strong industry partnerships, we felt that this was the best outcome for our customers and business partners as we simplify and strengthen our business.” Bhatia added.
“In nib we have found a buyer who is looking to grow their travel insurance business and they saw a great opportunity to deliver that through this acquisition. We believe nib is a good natural fit given their commitment to the travel market and the obvious synergies with health insurance.”
The transaction is scheduled to be completed during the first quarter of 2019.