CUNA Mutual Group said it has reached an agreement in principle to sell its Australian business operations to QBE Insurance Group.
QBE Australia is a member of the QBE Insurance Group, Australia's largest international insurance and reinsurance group and one of the top 25 global insurers and reinsurers as measured by gross written premium, according to CUNA Mutual. QBE Australia has more than 50 offices spanning each state and territory in Australia.
CUNA Mutual said as part of its strategic review process, it concluded its Australian business would be better positioned to serve its customers and for future growth under a different ownership structure.
"The decision to sell our Australian operations aligns with the best interests of our policyholders and the Australian credit unions and cooperatives we serve. This decision is also consistent with CUNA Mutual's efforts to focus on core products and markets where we bring differentiated value," said Faye Patzner, senior vice president, CUNA Mutual's head of international operations and the company's chief legal officer.
Patzner also said CUNA Mutual's Australian operation "is strong and well-positioned for growth under QBE, to leverage QBE's core strengths in the property casualty market and existing presence in the Australian market."
CUNA Mutual's international operations in Europe and the Caribbean will not be affected by the Australian operation acquisition, the company said.
"The European and Caribbean businesses provide CUNA Mutual a source of diversification at a time when our core U.S. credit union market is facing industry and economic pressure," Patzner said.