QBE today announced it is selling its US-based Westwood Insurance Agency for $375 million as part of efforts to simplify its business there.

Baldwin Risk Partners will buy the personal lines-focused agency, which specialises in builder sourced homeowners’ insurance.

“QBE’s strategy in North America is focused on building its Commercial, Specialty and Crop insurance portfolios,” QBE Group CEO Andrew Horton said in a statement to the Australian Securities Exchange (ASX).

“Whilst an attractive franchise, the Westwood business does not align with this strategy, and following this transaction QBE will no longer own any agency businesses in North America.”

In FY21, QBE underwrote about $200 million of gross written premium placed through Westwood, predominantly in homeowners, and it will continue to provide underwriting capacity for at least three years.

The transaction is subject to regulatory approval and is expected to complete on May 1.

In the same ASX release QBE says it has received about 3000 claims so far in relation to the flooding catastrophe in Queensland and NSW, mostly in personal lines.

“While still too early to determine the financial impact of the event for QBE, the Group has a maximum event retention of $125 million for non-peak events in the Australia Pacific Division.

“QBE’s FY22 catastrophe allowance is $962 million including a 1Q22 allowance of $248 million.”