German reinsurer Munich Re will buy HSB Group, belonging to the American International Group, for $742 in order to expand presence in the USA.
Company Hartford Steam Boiler Inspection and Insurance which, provides a covering of a 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, it 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 HSB’s losses. The overcautious person plans to finance transaction which, predictably, will be closed by the end of the first quarter 2009.
Insurance giant AIG sells the division because of debts