Toronto-based Fairfax Financial Holdings Ltd. (TSX:FFH) has entered into an agreement with QBE Management (Ireland) Ltd. and its Ukrainian partner to acquire QBE’s insurance operations in Ukraine.
The transaction, which is subject various regulatory approvals, is expected to close by the second quarter of 2015. Financial terms were not disclosed.
QBE’s Ukrainian business was established in 1998 as the first international insurer operating in the country. In 2014, this operation generated over US$5 million in profitable gross written premiums in a range of general insurance classes, including motor, property, marine, and general and product liability, Fairfax says.
On closing, the business will become part of Fairfax Eastern Europe under the leadership of its president, Peter Csakvari.
“We are thrilled to have QBE’s operations and its experienced team in Ukraine join Fairfax Eastern Europe,” said Prem Watsa, chairman and CEO of Fairfax, in a news release. “QBE has a very strong presence in the Ukrainian insurance sector, and this is a terrific opportunity for us to expand our operations in the region and continue to build Fairfax Eastern Europe’s profitable businesses over the long-term.”