Mitsui Sumitomo to buy Singapore-based First Capital Insurance for $2.8b

Mitsui Sumitomo to buy Singapore-based First Capital Insurance for $2.8b
A logo of Mitsui Sumitomo Insurance Company is seen at the company's headquarters in Tokyo, Japan, May 19, 2016.
PHOTO: Reuters

SINGAPORE - Mitsui Sumitomo Insurance Company Ltd has agreed to buy Singapore-based non-life insurer First Capital Insurance Ltd from Canada's Fairfax Financial Holdings for US$1.6 billion (S$2.8 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.

It said the all-cash purchase will result in a realised net investment gain of approximately US$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.

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