Goldman Sachs Group Inc., which generates the most revenue from equity trading of any bank in the world, said $1.08 billion of that revenue comes from its reinsurance business.
The unit produced $880 million of revenue in 2011, Goldman Sachs said today as it disclosed the contribution for the first time in its fourth-quarter earnings report. Reinsurance revenue accounted for 13 percent of the bank’s $8.21 billion of 2012 equities revenue.
The bank is in talks to sell a majority stake in its reinsurance business in a deal that would value the unit at about $1.1 billion, The Insurance Insider reported yesterday. David Wells, a spokesman for the New York-based firm, declined to comment on the potential sale.
Goldman Sachs Reinsurance Group has a global property and casualty reinsurance business as well as a life and annuity reinsurance operations primarily in the U.S. The bank agreed to in March to buy Ariel Holdings Ltd.’s Bermuda-based insurance and reinsurance businesses to expand property and casualty coverage.
Increased reserves in the reinsurance unit added to non-compensation expenses, the firm said today without providing figures.
Goldman Sachs’ equities division generated about $2 billion more than its closest competitor in the first nine months of the year.