Chicago — Taking a step toward putting its financial house in order, New York-based American International Group (AIG) has sold its specialty insurance subsidiary HSB Group to Munich Re for $742 million in cash. The transaction marks the first major divestiture for beleaguered AIG after it agreed to accept a bailout from the U.S. Treasury.

Hartford, Connecticut-based HSB Group is the parent company of Hartford Steam Boiler Inspection and Insurance Co. (HSB), which provides machinery/plant and equipment breakdown insurance, inspection, certification and engineering consulting services. Financially healthy, HSB posted an after-tax profit of $158 million on $ 904 million in gross written premium in 2007.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access