QBE Insurance , Australia's biggest insurance group, has agreed to buy the insurance portfolio of U.S. insurer Balboa from Bank of America and cut its insurance profit margin forecast as it counts the costs of recent floods and a cyclone. QBE said Friday it would assume about $1.2 billion of Balboa's insurance liabilities and make an upfront payment to Bank of America of $700 million for the distribution rights and portfolio transfer. The insurer also said its preliminary estimate of damage from Queensland's Cyclone Yasi this week was around $100 million, while recent flooding and severe weather across Australia's east would cost it about $100 million.
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