CGNU, the largest British insurer, is close to announcing the sale of its U.S. property-casualty unit, a move the international company has been anxious to complete. The sale price, according to a Reuters source, would be around $2 billion.
The most likely candidates to purchase the business include Bermuda-based White Mountains Insurance Group, Liberty Mutual Insurance Co. and Travelers Property Casualty Corp. CGNU, the result of the merge between CGU and Norwich Union earlier this year, put up the U.S. unit for sale in February.
The British giant felt it could not compete with the top five U.S. markets and would rather withdraw. CGU’s Boston-based U.S. operations, the No. 16 U.S. property-casualty insurer, booked $4 billion in premiums in 1999, making a profit of $285 million. The business has a book value of about $2 billion.
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