Bank of America Merrill Lynch (BofA) is considering selling its Balboa Insurance division to Australian general insurance provider, QBE Insurance Group,The Wall Street Journal reports. The lender will receive a total of as much as $2 billion from the transaction, which is likely to be announced by the end of this week.
As part of the agreement, the buyer could seek raising equity or conducting a hybrid debt issue to fund the deal. Balboa is a property and life insurance provider that was acquired by BofA in 2008 as part of its acquisition of Countrywide Financial.
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