Munich Re to buy AIG company

Germany’s Munich Re said Monday it will purchase the Hartford Steam Boiler Inspection and Insurance Co. for $742 million.

Although purchased by the American Insurance Group Inc. for $1.2 billion in 2000, the sale of the Hartford company will help AIG repay a portion its government bailout money, The Hartford (Conn.) Courant reported Monday.

AIG owes the government tens of billions of dollars, accepted this fall when the company, the largest U.S. insurer, was headed for collapse.

The acquisition of HSB is a perfect fit for our U.S. strategy, said Munich Re board member Peter Roder. It is another step in developing our position in high return specialized niche segments.

The Hartford insurance company employs about 2,500 worldwide, the report said.

HSB Group President and Chief Executive Officer Douglas Elliot said the sale offers HSB new opportunities to grow our business “¦ in North America and globally.