Decision Nº M/09/005 from Competition and Consumer Protection Commission, 2009-03-05

Decision NumberM/09/005
PartiesMunich-American Holding Corporation,HSB Group Inc
StatusCleared (Phase 1)
M/09/005 – MAHC – HSB 1 of 5
DETERMINATION OF MERGER NOTIFICATION M/09/005 -
MAHC / HSB
Section 21 of the Competition Act 2002
Proposed acquisition by Munich-Americ an Holding Corporation of HSB
Group, Inc.
5 March 2009
Introduction
1. On 16 February 2009, in accordance with section 18(1) of the
Competition Act 2002 (“the Act”), the Competition Authority (“the
Authority”) received a notification of a proposed transac tion whereby
Munich-American H olding Corporat ion (“MAHC”) would acquire the
entire issued and outstanding shares of HSB Group, Inc. (“HSB”).
Following completion of the prop osed transaction, MAHC would acquire
sole control of HSB.
The Undertakings Involved
The Acquirer
2. MAHC is a Delaware holding company
1
and a wholly-owned direct
subsidiary of German-headquarte red Münchener Rückversicherungs-
Gesellschaft Aktiengesellschaft ("Munich R e")
2
. Munich Re is the
ultimate holding company of the Munich Re group of companies (the
"Munich Re Group").
3. The Munich Re Group is active worldwid e in life insurance, commercial
non-life insurance, reinsurance (both life and non-life) and in asset
management. Munich R e operates in the US principally through the
insurance and reinsurance subsidiaries of M AHC.
4. In the State, the Munich Re Group is active in the following businesses:
The sale of direct non-life insurance to individuals, small firms
and corporate clients; and,
The s ale of reinsurance to primary insurers, carried out directly
through Munich Re.
5. The main function of insurance is to provide compensation to meet
claims in defined circum stances. Insurance markets provide a
mechanism for busines ses and individuals to transfer s ome of the risks
associated w ith all kinds of economic activities to firms that specialise
in absorbing risk. Purchas ers of insurance pay a premium into a fund
1
A Delaware corporation is a corporation that has its legal business affairs registered in the US
State of Delaware.
2
Munich Re is listed on the Frankfurt and Munich Stock Exchanges.

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT