Munich Re completes Hartford Steam Boiler acquisition

by David Masters

Story link: Munich Re completes Hartford Steam Boiler acquisition

Munich Re yesterday reported the completed acquisition of AIG subsidiary Hartford Steam Boiler (HSB) Group for $739 million.

Munich Re said in a statement that the all cash deal – first announced in December 2008 – was officially completed on Tuesday, and was financed from internal resources.

HSB was acquired by AIG in 2000 for $1.2 billion. Last year its gross written premium income was $930 million.

Its core business, HSB Inspection and Insurance Company, specialises in engineering risks as well as performing inspections and certifications.

Half of HSB’s 2,400 employees are engineers and technical inspectors.

The company also provides engineering consulting services.

Peter Roeder, Munich Re’s management board member responsible for North America, said: “With the acquisition of the HSB Group, we are continuing as planned to expand our position in the US in specialty insurance segments.

“This is part of our strategy to grow profitably in the US, the world’s most important insurance market.”

Doug Elliot, HSB Group president and CEO, added: “Our partnership with Munich Re will open new opportunities for HSB to create value for our clients and grow our business in the US and around the globe.

“With Munich Re’s financial strength and added resources behind us, we look forward to continued profitable growth.”