Dec. 18 (Bloomberg) -- Marsh & McLennan Cos., the second- largest insurance broker, agreed to pay 135 million pounds ($218 million) to HSBC Holdings Plc for a business that places coverage with corporations in the U.K., Middle East and Asia.
The cash and stock purchase of HSBC Insurance Brokers Ltd. is expected to be completed in the first quarter of 2010, New York-based Marsh & McLennan said today in a statement. Marsh & McLennan will have “preferred access” to provide brokerage business to customers of the London-based bank, the firm said.
The insurance business that made the fortune of the new leader of the UK Independence party (Ukip) is embroiled in an international bribery scandal that could lead to criminal charges in the UK, according to documents obtained by the Observer.
A detailed indictment served in Costa Rica this month alleges that a subsidiary of PWS, the insurance brokers which Lord Pearson of Rannoch founded and chaired, grossly overcharged the small central American state for its insurance premiums.
Dutch ING has agreed to sell its 50% stake in Pacific Antai Life Insurance to China Construction Bank as part of its restructuring programme, reported Reuters. Founded in 1998, Pacific Antai Life Insurance sells individual and group life insurance, and has about 300,000 customers.
Reportedly, the Netherlands-based financial group aims to pare back its operations and cut risks after being hit by the credit turmoil and receiving government life line in 2008.
Standard & Poor's (S&P) has predicted that US insurers are set to start 2010 on stronger footing, but that challenges persist. The rating agency maintains a negative outlook on the US life insurance market.S&P’s outlook on the life insurance market has been negative since October 2008 and downgrades continue despite general economic improvement. As such, S&P is remaining cautious in the sustainability of the recovery.
Prudential Financial has completed the sale of its minority joint venture interest in Wachovia Securities Financial Holdings, which includes Wells Fargo Advisors (formerly Wachovia Securities) to Wells Fargo & Company.
The company has received $4.5bn in cash at closing of the transaction. In addition, it also received $418.4m in payment of the principal and accrued interest on a subordinated promissory note that Wachovia Securities had issued in connection with the establishment of the joint venture.