Samsung Fire & Marine Insurance (SFMI) has agreed to acquire a further 40.6% stake in international specialty and P&C re/insurer Canopius Group, increasing its total ownership to 80.6%, while funds managed by KKR and Korea Investment Corporation (KIC) will hold 12.1% and 7.3%, respectively, subject to minor adjustments at closing.
Canopius’ other existing shareholders, including Fidentia Fortuna Holdings, the controlling consortium led by global private investment firm Centerbridge Partners, are reportedly selling the outstanding shares.
The agreement follows earlier reports that Samsung Fire & Marine Insurance and fellow Samsung Group affiliate Samsung Life Insurance were planning to acquire a further 50% stake in Canopius for more than KRW2 trillion ($1.47 billion).
The Korea Economic Daily first reported the proposed deal, citing unnamed industry sources, and several other mainstream publications later picked up the story.
The transaction marks the culmination of a seven-year strategic partnership, characterised by increased ownership and growing strategic and operational collaboration.
SFMI said it remains committed to preserving Canopius’ existing strengths, with the shared ambition of building a leading global specialty insurer across Lloyd’s, the US and Asia-Pacific.
Meanwhile, KKR will support Canopius’ continued growth and value creation through its global platform and operational, strategic and M&A expertise, while KIC, the Republic of Korea’s sovereign wealth fund, is participating in the co-investment as part of its strategy to support Korean companies’ global expansion.
Munhwa (Marvin) Lee, Chief Executive Officer & President of Samsung Fire & Marine Insurance, commented, “This acquisition marks a pivotal step in our journey towards becoming a truly global insurer. Building on seven years of trust between Canopius and SFMI, we will combine our strengths to solidify our position in the Lloyd’s market and pursue further global expansion, including in the US.” He added, “We will fully support Canopius, enabling both companies to succeed together while preserving its expertise and autonomy.”
Neil Robertson, Group Chief Executive Officer of Canopius Group, said, “SFMI has grown to know this business over the past seven years. They have watched, at close quarters, what we have built, and they are enticed by the exciting plans we have evolved, and they have chosen to back it in full. There is no greater compliment a partner can pay, and we are grateful for the confidence they are placing in us.
“What this brings Canopius is permanent capital and an owner with a long-term view; we will retain the same appetite, the same discipline and the same people alongside our clients and brokers. For everyone here this is a launch pad rather than a finish line, and I am incredibly optimistic about what we will build next. I would also like to thank Centerbridge and the other consortium partners for their support and partnership over the last few years.”
Centerbridge Partners Senior Managing Directors Ben Langworthy and Matthew Kabaker added, “It has been a privilege to support Canopius on its journey to becoming one of the world’s leading specialty underwriters. Alongside the Group’s management team and SFMI, we supported a period of substantial growth and transformation.
“Through strategic investment, operational enhancement and a disciplined focus on long-term value creation, Canopius has strengthened its market position, expanded its global footprint and enhanced its long-term growth prospects. Together, we helped build a stronger platform for sustained growth. We are proud of the value created during this partnership and wish the company, its management team and SFMI every success in the years ahead.”
Michael Small, Partner, Credit & Markets at KKR, noted, “This transaction reflects the value of flexible, long-term capital in supporting a high-quality business with a differentiated global franchise. We look forward to supporting Canopius in its next phase of growth, drawing on KKR’s global network and deep operational and sector experience across insurance and reinsurance.”
Il Young Park, KIC CEO, said, “KIC will continue to actively participate in a diverse range of investments and seek opportunities to enhance the competitiveness of Korean industry through the overseas expansion of Korean companies.”
