Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) has bought leading mortgage insurance firm EMI Ltd. for $35.5 million from American Insurance Group Inc. (NYSE: AIG) unit United Guaranty Corporation.
Global insurance giant AIG unit United Guaranty wholly owns EMI through AIG Holding Ltd. EMI's acquisition by Harel Insurance Ltd. requires regulatory approval, including the Antitrust Authority and the Ministry of Finance Capital Markets, Insurance and Savings Division.
Harel will finance the acquisition from its own sources.
EMI provides insurance coverage for mortgages on properties in which the value of the asset is not enough to cover the loan in case of foreclosure. Its customers are mortgage banks which want to protect against defaults.
EMI posted a profit of NIS 53.9 million in January-September.
Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2009
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