GE sells Hallmark general business

The Treasury has approved the sale of General Electric’s Hallmark General Insurance to a global private equity firm with Asian and US capital.

KVD Australia – a company incorporated on 9 March this year – is also acquiring Hallmark Life, GE Capital Finance and GE Personal Finance.

The treasury documents also name KVD Singapore and KVD Australia Holdco as parties to the transaction.

KVD Australia’s affiliated companies are listed as Deutsche Bank, Singapore-based Vatpo Investments and US-based major private equity firm KKR.

Deutsche Bank has a significant investment in KVD, which the Treasury said must remain below 50% as part of the approval. A similar condition has been introduced for Vatpo and KKR Clarendon Holdings, which own shares in KVD Singapore.

The transaction must be completed by December 31.

General Electric declined to comment when approached by insuranceNEWS.com.au.

Australian Prudential Regulatory Authority figures for the calendar year show Hallmark General Insurance’s total premium earned at $63 million, with $14.2 million in total claims incurred. It brought in after-tax profits of $18.4 million.