The move is part of the reinsurer’s Changing Gear programme, a strategy for the US insurance market launched last year.
The HSB Group, headquartered in Hartford, Connecticut, is a wholly owned subsidiary of AIG whose core business is insurance and inspection company Hartford Steam Boiler Inspection and Insurance.
Munich Re America chief executive officer Tony Kuczinski says: “We extend a warm welcome to the clients and employees of HSB. HSB has built a tremendous reputation for underwriting highly technical machinery and engineering risks. We believe the strong underwriting culture of HSB and the company’s exceptional client focus makes it an excellent fit for Munich Re.”
The reinsurer’s chief finance officer Jörg Schneider says the acquisition will not affect its share buy-back programme or the planned dividend of €5.50 per share for the financial year 2008.
HSB Group president and chief executive officer Douglas G. Elliot says the move will bring new opportunities to grow HSB “profitably and expand our offerings in North America and globally”.