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

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

Treasury documents also name KVD Singapore and KVD Australia Holdco as parties involved in the transaction.

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

Deutsche Bank has a significant investment in KVD, which Treasury says must remain below 50% as part of the approval. An identical condition has been put on Vatpo and KKR Clarendon Holdings, which owns a stake in KVD Singapore.

The deal must be completed by December 31.

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

Australian Prudential Regulation Authority figures for last calendar year show Hallmark General Insurance’s gross earned premium was $63 million, with $14.2 million of gross incurred claims. It delivered an after-tax profit of $18.4 million.