JAPAN’S Mitsui Sumitomo Insurance (MSI) has agreed to buy Britain’s Amlin, the latest Japanese insurer to launch an overseas acquisition while it faces slowing growth at home. The $5.3bn (£3.47bn) all-cash deal is expected to be completed by the end of March 2016, the company said on Tuesday.
The combination will accelerate MSI’s strategy of growing its international business,” the Mitsui
Sumitomo president, Yasuyoshi Karasawa, said in a statement.
Mitsui said the offer represented a 36% premium on Amlin’s 492.5p closing share price on 7 September.
Both firms operate a portfolio of non-life insurance businesses in the marine, aviation, property and liability sectors, while the British firm has a unit for reinsurance, a type of insurance bought by insurers.
The deal comes after Meiji Yasuda Life Insurance said in July it would buy US-based StanCorp Financial group for $5bn, while insurer Tokio Marine Holdings agreed to buy US-based HCC Insurance Holdings for $7.5bn in June.
In February, another major life insurance firm, Dai-ichi Life, completed the purchase of American Protective Life for $5.55bn. Japanese insurance companies are on a buying spree as they pursue business outside their home market, where a shrinking population has stifled growth.
Source: Guardian Newspaper