Fairfax Financial announces insurance acquisition in eastern Europe

Two weeks after announcing the acquisition of an insurer in Malaysia, Toronto-based Fairfax Financial Holdings Ltd. announced it has agreed to acquire some of QBE Insurance Group Ltd.’s operations in Eastern Europe.

Fairfax said in a Dec. 16 press release it has entered an acquisition agreement with QBE Insurance (Europe) Ltd. Fairfax anticipates that QBE will transfer to Fairfax QBE’s existing business and renewal rights, of its operations in the Czech Republic, Hungary and Slovakia, by the third quarter of 2015.

Fairfax Financial’s Canadian insurance operations include Northbridge Insurance and Federated Insurance.

The agreement with QBE is subject to “customary closing conditions,” including regulatory approval.

“On closing, these operations will become part of Fairfax Eastern Europe under the leadership of Peter Csakvari, a 22-year insurance leader in Eastern Europe,” Fairfax Financial stated Tuesday.

Sydney, Australia-based QBE says it employs more than 17,000 people in 43 countries.

QBE’s Eastern European operations provide property, travel, general liability and product protection coverage.

In Asia, Fairfax Financial owns Singapore-based First Capital, Hong Kong-based Falcon Insurance and Kuala Lumpur-based Pacific Insurance.

On Dec. 1, Fairfax announced its intent to acquire the general insurance business of MCIS of Malaysia, whose offerings include auto, property, liability, marine, engineering and performance bonds. Once that acquisition closes, MCIS will “integrate” with Pacific Insurance, Fairfax said Dec. 1.

Fairfax’s holdings in the United States include Zenith National Insurance, Crum & Forster, United States Fire Insurance Company, Seneca Insurance Company, The North River Insurance Company, First Mercury Insurance Company and American Underwriters Insurance Company.

Fairfax also owns Stamford, Conn.-based Odyssey Reinsurance Company, whose holdings include Newline Syndicate 1218 at Lloyd’s

Non-insurance firms in which Fairfax Financial has a controlling interest include Sporting Life Inc., Kitchen Stuff Plus Inc., William Ashley China Corp.  and livestock feed producer Ridley Inc.