Japanese insurance and reinsurance giant Mitsui Sumitomo Insurance (MSI), a subsidiary of MS&AD Insurance Group Holdings, has been approved to complete its proposed acquisition of Fairfax Financial Holdings Limited’s 97.7% interest in First Capital Insurance Limited of Singapore.
The acquisition was originally announced back in August, as Mitsui Sumitomo and Fairfax entered into an agreement that included collaboration including on their reinsurance relationships, in a deal that also offered the opportunity to mutually participate in writing selected classes of non-life insurance business.
All regulatory approvals have now been received and Mitsui Sumitomo Insurance will acquire Fairfax’s 97.7% interest in First Capital Insurance Limited of Singapore, with the deal expected to close on December 28th 2017.
The transaction works to the benefit of both companies, offering Mitsui Sumitomo an enlarged footprint in southeast Asia, while Fairfax will benefit from the reinsurance synergies and by retaining a quota share of business.
