Charlotte, N.C.-based Bank of America Corp. is acquiring the Balboa Insurance Group as part of the deal announced today to acquire Countrywide Financial Corp., Calabasas, Calif., in a $4 billion stock transaction.
Balboa's financial strength rating, because of problems with its parent company, has been under review since last August by A.M. Best Co. The rating agency said in the wake of the acquisition the status was now “under review with developing implications.”
Countrywide, a residential mortgage lender, as a result of weakness in the subprime mortgage and real estate markets, has reported $282 million in net losses for the first three quarters of 2007 on $4.9 billion in revenue, down from $2.1 billion in net income on $8.7 billion in revenue for the comparable period in 2006.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
