Insurance giant AIG sells the division because of debts
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.