BofA Close To Selling Balboa Unit

Bank of America BAC, the largest U.S. bank by assets, is reportedly close to selling its Balboa Insurance business to Australia's QBE Insurance Group, Bloomberg News reported, citing two people with knowledge of the deal. A deal could be announced as soon as this week. Balboa was obtained by BofA through the controversial 2008 purchase of Countrywide. Balboa's business line? Providing coverage to owners of disressed and foreclosed properties. BofA has been parting with assets it views as non-essential in an effort to re-focus its efforts on commercial and retail banking. The Balboa purchase being negotiated involves an up-front payment and a contingent amount determined by the unit's future performance, Bloomberg reported, citing one of the sources. A deal price was not mentioned in the report. Assurant AIZ and White Mountains Insurance Group WTM were also rumored to be interested in the Balboa business, Bloomberg reported.