nib expands its travel insurance business
Monday, August 6th 2018, 11:32AM
nib holdings is to buy QBE’s travel insurance business for a total of up to A$25 million.
The acquisition includes the distribution and claims capability of QBE Travel, but excludes capital supporting the business and the QBE brand. Consistent with nib’s strategy to grow its World Nomads Group (WNG) travel insurance business,
the acquisition will provide greater scale and distribution reach.
Final total consideration is dependent on the level of business generated. The acquisition is expected to complete in the first quarter 2019.
QBE Travel has an extensive distribution network including partnerships with well-known Australian brands, as well as a national network of more than 2,000 travel insurance agents. The business also includes a 24-hour emergency assistance service, claims management and medical
underwriting capability.
On completion of the acquisition, WNG annual domestic gross written premium has the potential to increase by up to 40%.
nib Managing Director, Mark Fitzgibbon, said the acquisition builds further momentum within nib’s travel insurance business which aside from this transaction, has already seen sales lift by 7% for FY18.
“Since acquiring WNG in mid-2015, we’ve made no secret that we like the fundamentals and growth prospects that underpin the travel insurance market,” Fitzgibbon said.
“Travel insurance is much closer to health insurance than most imagine given more than 60% of travel insurance claims are medically related. And of course, people travelling internationally more and more is a mega-trend.
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