Insurance giant AIG sells the division because of debts
13 January 2009German Munich Re will buy HSB Group, belonging American International Group, for $742 million to expand presence in the USA.
Company Hartford Steam Boiler Inspection and Insurance, which provides covering wide spectrum of risks, is HSB’s basic active. In 2007 after payment of taxes HSB’s profit has made $158 million, and the total premium - $904 million.
AIG, which has bought Hartford Steam Boiler in 2000 approximately for $1,2 billion, is compelled to sell actives worldwide to repay the government.
Munich Re has informed that the agreement on purchase contains a term, which will protect the company from further investment losses. Munich Re is going to finance the transaction which, predictably, will be closed by the end of the first quarter 2009, completely from existing resources.
- Barclays sells Swiss Rе division on life insurance for 1,5 billion dollars
- Warren Buffett has offered to buy back the insurance for debts in 800 billion
- Fortis: unprofitable and unattractive
- Manulife studies an opportunity of AIG’s purchase
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