Germany’s Munich Reinsurance Group has deepened its North American presence, completing its $739 million cash buyout of Hartford-based HSB Group Inc. from AIG.
The deal was completed Tuesday, officials said today. HSB will be managed with Munich Re America as a standalone business, Munich Re said.
HSB Group is comprised of Hartford Steam Boiler Inspection and Insurance Co.; Hartford Steam Boiler Inspection and Insurance Co. of Connecticut; Boiler Inspection and Insurance Co. of Canada; and HSB Engineering Insurance Ltd.
Doug Elliot, HSB Group president and CEO, said today the “partnership with Munich Re will open new opportunities for HSB to create value for our clients and grow our business in the U.S. and around the globe.”
According to a news release posted on Munich Re’s Web site, Munich Re financed the deal from internal resources. The deal received all requisite approvals, including from the Connecticut Department of Insurance, the company said.
The HSB Group’s equity capital at Dec. 31 was about $586 million, and its gross written premium income for 2008 totaled $930 million, Munich Re said.
“With the acquisition of the HSB Group, we are continuing as planned to expand our position in the U.S. in specialty insurance niche segments,” said Peter Röder, member of the Munich Re management board responsible for business in North America. “This is part of our strategy to grow profitably in the US, the world’s most important insurance market.”
Meanwhile, Insurance rating agency A.M. Best Co. said today ratings of HSB Group remain under review with positive implications.
