Posted on 02 Apr 2009
Munich Re had announced last December that it would acquire all the shares in US specialty insurer HSB Group. The transaction was formally completed on 31 March 2009. 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 is Hartford Steam Boiler Inspection and Insurance Company (HSB), one of the largest insurance and inspection companies specialising in engineering risks in the US. HSB is a leading worldwide provider of equipment breakdown and engineered lines of insurance, other specialty coverages, and inspection, certification and engineering consulting services. The Group’s equity capital as at 31 December 2008 amounted to around US$ 586m, and its gross written premium income for 2008 totalled US$ 930m.
"With the acquisition of the HSB Group, we are continuing as planned to expand our position in the US in specialty insurance niche segments. This is part of our strategy to grow profitably in the US, the world’s most important insurance market", said Peter Röder, member of the Board of Management responsible for business in North America.
"We are really excited the acquisition is now complete and we can focus all of our energies on servicing our respective clients. We are pleased to welcome a highly experienced and committed management team as well as such outstanding staff", said Tony Kuczinski, Chief Executive Officer (CEO) of Munich Re America. HSB will be managed with Munich Re America as a standalone business.
"Our 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," said Doug Elliot, President and CEO of HSB Group. "With Munich Re’s financial strength and added resources behind us, we look forward to continued profitable growth."