Mitsui Sumitomo to buy Singapore’s First CapitalAugust 25 2017 by InsuranceAsia News Staff
Japan’s Mitsui Sumitomo Insurance is paying US$1.6 billion to acquire First Capital Insurance, a Singapore-based non-life insurer, from Canada’s Fairfax Financial Holdings.
First Capital is the largest non-life insurance company in Singapore and writes both personal and commercial lines of non-life business across various classes.
In a statement, Fairfax said it will also explore a broad global partnership with Mitsui Sumitomo in various areas, including reinsurance.
The acquisition further highlights the growing appetite among Japanese insurers to expand outside their home markets.
Mitsui Sumitomo will acquire Fairfax’s 97.7% interest in First Capital Insurance, with Fairfax retaining a meaningful quota share exposure to First Capital’s insurance portfolio.
The cash purchase price for Fairfax’s interest in First Capital is US$1.6 billion, which will result in a realized net investment gain of approximately US$900 million after tax.
Ramaswamy Athappan will remain as First Capital’s chief executive officer, while continuing to retain his responsibilities as chairman of Fairfax Asia.
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