USAA’s parent company, UnitedHealth, announced on Monday that it will buy Indian Home and Life Insurance Corporation Ltd.
(HALCO), a subsidiary of the USAA, for an undisclosed amount.
The announcement follows a decision by USAA to drop its $5.2 billion offer to buy the reinsurance company last month, citing weak market conditions in India.
The USAA announcement comes after the company said in January it would sell off HALCO.
The company said the sale of HALCO would not result in a loss of $10 billion.USAA is the largest reinsurance and life insurance company in the US.
The insurer said the move was made to align its portfolio with other reinsurers and ensure that its customers and employees are protected in the event of any catastrophic event.
USAA said it had previously sold the reinsurer to an affiliate of another USAA-owned company, AmerisourceBergen, for $3.3 billion.
The merger will be USAA India’s largest since USAA bought reinsurance firm Indian National Life Insurance Co Ltd (INLH) in 2013 for $4.3 million.
The deal is expected to close in the fourth quarter of 2021.