Bank of America Reportedly Close to Deal on Balboa

Reuters

Bank of America Corp (NYSE:BAC) is close to a deal to sell its Balboa insurance business to Australia's QBE Insurance Group Ltd, Bloomberg reported, citing unnamed sources.

Talks are ongoing for a deal that includes up-front payments as well as an amount based on the unit's future performance, Bloomberg reported.

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Negotiations are advanced and a deal could be reached this week, it said.

Bank of America and QBE declined to comment.

Bank of America bought Balboa in 2008 as part of the Countrywide Financial Corp purchase and provides lenders' insurance on foreclosed and distressed properties.

Bank of America announced in 2010 it planned to sell Balboa as part of asset sales to raise $3 billion to complete its Troubled Asset Relief Program repayment.

The bank has since raised the funds -- meeting the final requirement laid out by the Federal Reserve -- by selling large stakes in BlackRock (NYSE:BLK) and China Construction Bank.

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