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

• Jurisdiction: Ireland
• Parties: Munich-American Holding Corporation,HSB Group Inc
• Date: 05 March 2009
• Decision Number: M/09/005
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 05 March 2009

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.