Chubb Corp. announced that it has completed the sale of its ownership interest in Associated Aviation Underwriters, Inc. (AAU) to British Aviation Insurance Group Ltd. (BAIG). Chubb’s partner in the aviation and satellite carrier, CNA Financial also sold its interest to BAIG.
Total consideration for the sale, which Chubb and CNA will share, was $140 million -$110 million base price, $20 million for a non-competition agreement, and a $10 million dividend.
The announcement also indicated that, “As part of the sale, and to provide continuity in the transition to the new owners, Chubb and CNA each have agreed to a 5% participation for two years in an aviation insurance pool managed by BAIG on behalf of BAIG’s owners, CGNU plc and Royal & Sun Alliance Insurance Group plc, and other pool members. Previously, Chubb and CNA each had a 27.5 participation in the aviation pool managed by AAU.”
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