New Deal between AIG and Munich Re
Monday 22 December 2008 towards the end of the year, AIG (American International Group Inc.) do not know with the privatization will sell Harford Steam Boiler (one business unit) to reinsure the German company Germany Munich Re for $ 742 million. Sales conducted as this effort as company rescue and as a step to pay the loan.
The purchase price is considered lower than the price of HSB Group Inc. 's, which has reached $ 1 billion and $ 2 billion by the Financial Times, which forced them to sell assets, assets to the government loan to pay for the United States (U.S. government bailout loan) government loan.
To reporters, Joerg Schneider, Chief of Munic Re Financial said that the financial condition when they face now is not something that is expected and dreamed recently.
AIG spokesman said that they have no good reason or dare to comment because the transaction has not agreed to terms, but Douglas Elliot, AIG spokesman explained that this transaction is uncertainty in the market and of course their clients (the German reinsire Munich Re) Munich Re plans to complete the purchase in the first quarter of 2009 next year, and will assume $ 76 million as of HSB's outstanding capital securities.
HSB, which is based in Hardford, Conn, is one of the subsidiary of the Hartford Steam Boiler Inspection and Insurance Company with the task of engineering insurance and inspection.
Peter Roeder, Munich Re board member responsible for business HSB in America, said HSB is interesting, because low-risk investment because only play in the field of business only. Acquisition HSB process is perfect as a strategy for market entry to the United States. This is a good step in restoring our position as one of the best and the purchase is regarded as a high ROI
Reinsures sell backup coverage to other insurers, as one of risk management, and when problems occur, the system can handle large or widespread losses. Munich Re also operates ERGO, one of Germany's largest insurer, and Munich Reinsurance America Inc.
HSB is romoured will be sold, as an effort to get fresh funds to restore the emergency loan from the government of the United States about U.S. $ 150 billion in a rescue effort from the government of the United States against companies that have problems in the credit crisis or credit misfire
AIG also received the actual injection of funds from the Fed of $ 85 million USD in an attempt to overcome credit problems and the debt is actually paid. Because the loan from the United States government $ 150 million USD have been paid by the AIG.
AIG does not expect much from the high price of the auction business unit that will be sold, but they will still maintain AIG as one of the U.S. property and casualty and foreign general insurance businesses, and retain ownership of their branches throughout the world as one of the insurance companies in the world
The Company does not have assets that are specifically disclosed it will sell or the expected price of the sale. However, AIG has said it plans to retain its U.S. property and casualty business and foreign general insurance, and plans to maintain a foreign ownership in life insurance operations.
The purchase price is considered lower than the price of HSB Group Inc. 's, which has reached $ 1 billion and $ 2 billion by the Financial Times, which forced them to sell assets, assets to the government loan to pay for the United States (U.S. government bailout loan) government loan.
To reporters, Joerg Schneider, Chief of Munic Re Financial said that the financial condition when they face now is not something that is expected and dreamed recently.
AIG spokesman said that they have no good reason or dare to comment because the transaction has not agreed to terms, but Douglas Elliot, AIG spokesman explained that this transaction is uncertainty in the market and of course their clients (the German reinsire Munich Re) Munich Re plans to complete the purchase in the first quarter of 2009 next year, and will assume $ 76 million as of HSB's outstanding capital securities.
HSB, which is based in Hardford, Conn, is one of the subsidiary of the Hartford Steam Boiler Inspection and Insurance Company with the task of engineering insurance and inspection.
Peter Roeder, Munich Re board member responsible for business HSB in America, said HSB is interesting, because low-risk investment because only play in the field of business only. Acquisition HSB process is perfect as a strategy for market entry to the United States. This is a good step in restoring our position as one of the best and the purchase is regarded as a high ROI
Reinsures sell backup coverage to other insurers, as one of risk management, and when problems occur, the system can handle large or widespread losses. Munich Re also operates ERGO, one of Germany's largest insurer, and Munich Reinsurance America Inc.
HSB is romoured will be sold, as an effort to get fresh funds to restore the emergency loan from the government of the United States about U.S. $ 150 billion in a rescue effort from the government of the United States against companies that have problems in the credit crisis or credit misfire
AIG also received the actual injection of funds from the Fed of $ 85 million USD in an attempt to overcome credit problems and the debt is actually paid. Because the loan from the United States government $ 150 million USD have been paid by the AIG.
AIG does not expect much from the high price of the auction business unit that will be sold, but they will still maintain AIG as one of the U.S. property and casualty and foreign general insurance businesses, and retain ownership of their branches throughout the world as one of the insurance companies in the world
The Company does not have assets that are specifically disclosed it will sell or the expected price of the sale. However, AIG has said it plans to retain its U.S. property and casualty business and foreign general insurance, and plans to maintain a foreign ownership in life insurance operations.
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