Fairfax Financial Holdings has now completed the sale of its 97.7% interest in First Capital Insurance Limited of Singapore to Mitsui Sumitomo Insurance Company, for a cash purchase price of $1.6 billion.
The deal was first announced in August of this year, and has now completed after Mitsui Sumitomo received approval to acquire Fairfax’s interest earlier in December, 2017.
Fairfax and Mitsui Sumitomo have both said previously that this broad global partnership will lead to growth and added value for both entities.
The agreement is slated to include collaboration in a range of segments including reinsurance relationships which would offer the opportunity to mutually participate in writing selected classes of non-life insurance business.
As a result, this acquisition provides Mitsui Sumitomo with an enlarged footprint in southeast Asia, while Fairfax benefits from the reinsurance synergies and by retaining a quota share of subject business.
