BREAKING NEWS

BREAKING NEWS

Munich Re snaps up HSB from AIG

Now Reading:

Munich Re snaps up HSB from AIG

Text size Aa Aa

German reinsurer Munich Re has bought AIG’s HSB group for 531 million euros in cash as the American giant struggles to raise money to pay off a huge US government loan.

In 2000 AIG bought HSB for 859 million euros, and last year it delivered profits of over 100 million euros to AIG. Munich Re says the purchase is funded entirely from existing resources, and is a way of expanding its US business without affecting dividends or its share buyback programme.