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BofA Plans $2B Insurance Unit Sale

Bank of America Merrill Lynch is considering selling its Balboa Insurance division to Australian general insurance provider, QBE Insurance Group.

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.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Financial Times.

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