Mitsui Sumitomo Insurance to buy US reinsurance broker for US$400m

Published Sun, Aug 7, 2022 · 05:51 PM

Mitsui Sumitomo Insurance Company, a subsidiary of Japan’s MS&AD Insurance Group Holdings, will spend about US$400 million to buy US reinsurance broker Transverse, the Nikkei business daily reported on Sunday (Aug 7).

The Japanese property insurer aims to gain know-how of the reinsurance broker business, which could help with the expansion of an insurance market specialised in fields such as cybercrime, the Nikkei said.

Mitsui Sumitomo Insurance may pay up to an additional US$150 million, depending on the US company’s earnings after the deal, the Nikkei said, adding that an announcement was expected by the end of the month.

MS&AD said in a statement it was considering various business investment opportunities, including those reported in the media, but nothing had been decided.

It said it would announce anything that needed to be disclosed promptly when it was decided.

Transverse, established in 2018 and based in New Jersey, acts as a broker for reinsurance across the United States, receiving about 5 per cent of insurance premiums as commission by connecting insurers and reinsurance companies, said the Nikkei.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

In the United States, growing risk of natural disasters, terrorism and cybercrime have led to an increase of sales of policies provided by insurers that specialise in certain fields such as transport and medicine.

But insurance against such risks as cyberattacks has not become widespread in Japan, the Nikkei said. Reuters

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Companies & Markets

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here