QBE sells US subsidiary for a loss

QBE will sell its Mortgage and Lender Services business in the US for $US90 million, but expects to make a $US120 million loss on the deal.

Insurer QBE will take a $US120 million ($A162.65 million) hit to its first half profit due to the sale of its Mortgage and Lender Services business in the US.

QBE has agreed to sell the business to National General Holdings for $US90 million but expects to make a $US120 million loss on the deal due to non-cash charges and write-offs associated with the transaction.

But the company says the deal will free up more than $US100 million of capital to be re-invested elsewhere in the insurer's operations.