Cash-rich, top-three Japanese insurer, NKSJ Holdings has acquired Canopius for £594 million as it moves to broaden its international footprint through its purchase of the London market player.
NKSJ Holdings has agreed through its subsidiary Sompo Insurance to acquire 100 percent of the shares of Canopius, pricing the acquisition at 1.5 times Canopius’ unaudited tangible net asset value as of 30 June 2013.
Agreement was reached with Bregal Capital, which is an 84 percent shareholder in Canopius and senior management. NKSJ said that Canopius would form the foundation of the insurer’s specialty insurance business and will strengthen its international profile. Canopius will meanwhile retain its brand, and the incumbent management team will remain in place.
With little overlap in business and geographies, it is expected that the acquisition will bring significant benefits to NKSJ.
Commenting on the deal, Kengo Sakurada, president and representative director of NKSJ Holdings said: “We are delighted to be welcoming Canopius into the NKSJ family of companies. As one of the top 10 insurers in the Lloyd’s insurance market, Canopius’s significant underwriting capabilities and track record in executing strategic mergers has helped achieve rapid growth in the last five years.”
“This acquisition, one of the largest we have undertaken, forms part of our long term strategy to grow our overseas insurance business. Under the leadership of Chairman and CEO, Michael Watson, Canopius brings a highly experienced and talented management team to the NKSJ Group, and we look forward to working with them.”
Canopius, NKSJ Holdings, M&A, acquisition