AIG sells unit to Munich Re for $742 million
HSB Group of Hartford, Conn., provides machinery/plant and equipment breakdown insurance, inspection and engineering consulting services.
Munich Re Group today said that it will acquire HSB Group Inc., an AIG specialty insurer subsidiary, for $742 million.
HSB Group of Hartford, Conn., provides machinery/plant and equipment breakdown insurance, inspection and engineering consulting services.
Douglas Elliot, chief executive of HSB, will remain to run the company.
Munich Re’s all-cash purchase is expected to close at the end of the first quarter of 2009, pending regulatory approval.
The German reinsurer, which covered the purchase with existing cash resources, paid just a fraction of the $1.2 billion that American International Group Inc. ponied up when it bought the unit in 2000.
HSB, once a wholly owned subsidiary of AIG of New York, is also the parent company of Hartford Steam Boiler Inspection and Insurance Co.
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