BofA Completes Sale Of Insurance Unit

June 02—Bank of America Corp. has completed the sale of its Balboa Insurance Co. to Australia-based QBE Insurance Group Ltd., the bank said Wednesday night.

The companies first announced the deal in February, with QBE agreeing to pay the Charlotte bank $700 million up front for the insurance unit’s property and casualty assets and liabilities. Balboa’s products include so-called lender-placed insurance used by financial institutions.

The sale allows Bank of America to exit the market for coverage of foreclosed homes and those with distressed buyers.

Bank officials said the sale is consistent with the bank’s strategy to focus on businesses that directly serve customers and clients, while continuing to strengthen its balance sheet.

The transaction with QBE, Australia’s largest insurer, includes a long-term distribution agreement with Bank of America in which QBE will cover properties for the bank.

Bank of America acquired the Balboa business in its 2008 Countrywide Financial Corp. purchase. Countrywide acquired Balboa Insurance in 1999.

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