Of Special Interest
8th July 2011
Bank of America sells Balboa Life
Securian is to buy Balboa Life Co and Balboa Life insurance co of New York from Bank of America. No financials were disclosed in a brief after hours statement on Thursday other than Bank of America expects to book a $750m pre-tax profit from the sale which is to be included in the second quarter results. Earlier this year BoA sold the credit insurance division of Balboa to QBE for $700m.
Bank of America has been disposing of non core businesses. The bank is facing litigation on several fronts and will have to pay out many billions of dollars. Any sales at this time are therefore particularly welcome.