German reinsurer Munich Re has successfully concluded the acquisition of specialty insurer HSB Group from American International Group for $739 million. The deal was originally announced last December.
The purchase price in cash was financed by Munich Re from internal resources. All the requisite approvals have now been obtained from the relevant authorities.
The core of the HSB Group, Hartford Steam Boiler Inspection and Insurance Co., is one of the largest insurance and inspection companies specializing in engineering risks in the U.S. HSB is a provider of equipment breakdown and engineered lines of insurance, other specialty coverages, and inspection, certification and engineering consulting services.
HSB Group’s equity capital as of Dec. 31, 2008 amounted to around $586 million and its gross written premium income for 2008 totaled $930 million.
A.M. Best Co. indicated that HSB and its members ratings “remain under review with positive implications.”
Lockton International has been granted a license by the Dubai Financial Services Authority to operate as an insurance broker in the Dubai International Financial Centre.
The Dubai office represents Lockton’s first footsteps into the Middle East and North African region, with further expansion planned. Dubai will be the regional hub and will operate as a treaty and facultative reinsurance operation, serving the needs of regional insurance companies. The office will be equipped to handle all classes of business backed by the firm’s wholesale operations in London and elsewhere.
Lockton Dubai will be managed by Wael Khatib, who has been appointed president.
Allied World Assurance Co. Holdings has opened a branch office in Hong Kong in order to expand its operations into Asia. Bill Cotter, senior vice president, Asia, will oversee all Asian insurance operations from the new office.
Initial offerings include primary and excess professional lines and general casualty products as well as accident and health products.
Cotter has years of international experience in the Asian market. For the last two years he has been the CEO of CIGNA Worldwide Life Insurance Co. and CIGNA Worldwide General Insurance Co., a Hong Kong subsidiary of CIGNA International. He also worked for AIG and its affiliates for over 15 years.
The Bank of East Asia has signed a deal to buy the Taiwan securities arm of American International Group as the ailing U.S. insurance giant sells assets to raise cash.
The deal is subject to regulatory approval in Taiwan, Chan Kay-cheung, vice chairman of Bank of East Asia (China), told Reuters.
Motorists Mutual Insurance Co. of Columbus, Ohio, has been approved for membership at Federal Home Loan Bank of Cincinnati.
Motorists is among more than 180 insurance companies in the 12-district FHLBank system. Membership allows Motorists to take advantage of FHLBank’s product line, including advances that can be used for liquidity management and general asset/liability management.
Motorists Mutual Insurance Co. is the lead company in The Motorists Insurance Group, which is composed of nine property and casualty, life and brokerage companies. Motorists’ products are sold by a network of more than 4,000 independent agents in Ohio, Pennsylvania, West Virginia, Kentucky, Indiana and Michigan.
The FHLBank is a $98 billion wholesale regional bank providing financial services for residential housing and economic development to 728 member financial institutions in Kentucky, Ohio and Tennessee.
Guy Carpenter, Collins
Guy Carpenter & Co. LLC completed the previously announced acquisition of John B. Collins Associates Inc.
The acquisition of Collins, the fifth largest reinsurance intermediary in the U.S. and seventh largest in the world, strengthens Guy Carpenter’s capabilities in medical professional liability, agriculture, Florida property, program, and regional specialty lines of business.
Terms of the transaction have not been disclosed.
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