Mitsui Sumitomo Is Going to Buy Singapore’s First Capital Insurance for $1.6 Billion
Thu Aug 24 2017
Julie Young (533 articles)

Mitsui Sumitomo Is Going to Buy Singapore’s First Capital Insurance for $1.6 Billion

Mitsui Sumitomo Insurance Company Ltd (msady) has agreed to buy Singapore-based non-life insurer First Capital Insurance Ltd from Canada’s Fairfax Financial Holdings (frfff) for $ 1.6 billion, underscoring growing appetite among Japanese insurers to expand outside their home markets.

Mitsui Sumitomo Insurance, the core firm of MS&AD Insurance Group Holdings, and Fairfax will also explore a broad global partnership in various areas, including reinsurance relationships, Fairfax said in a statement on Thursday.

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It said the all-cash purchase will result in a realized net investment gain of approximately $ 900 million after tax.

First Capital, the largest non-life insurer in Singapore, writes both personal and commercial lines of non-life insurance business across various classes such as fire, marine hull, marine cargo, motor and personal accident.

The deal is subject to regulatory approvals and is expected to close in late 2017 or early next year.

Julie Young

Julie Young

Julie Young is a Senior Market Reporter and Analyst. She has been covering stock markets for many years.

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