On Tuesday, the insurance company The Mitsui Sumitomo announced its plan to acquire the British insurer Amlin for $5.3 billion.
Amlin is a private insurer that specializes in insurance coverage for commercial enterprises and reinsurance protection to other insurance firms around the world. It underwrites over 30 categories of businesses through three different platforms property and casualty; marine and aviation and reinsurance that includes Syndicate 2001 at Lloyd’s, Amlin, Switzerland and Amlin Europe, The Netherlands. After from cover for commercial enterprises, it also offers property and casualty insurances services.
The acquisition deal is still in talks and nothing has been confirmed as of now, said Mitsui Sumitomo. However, the confirmation comes Nikkei’s report that the two companies were in final talks of the acquisition deal. The deal demands Amlin shareholders to receive 670 pence a share in cash and to be eligible for an interim dividend of 8.4 pence a share. As per the deal, the price indicates a premium of 36% of Amlin’s yesterday closing price.
“We are delighted to be announcing the combination of MSI and Amlin to create a world-leading insurance company, with an international business anchored in the Lloyd’s market,” said Yasuyoshi Karasawa, the president and CEO of Mitsui Sumitomo. He also added, “The combination will accelerate MSI’s strategy of growing its international business and drive a number of benefits across Amlin’s business as a result of its being part of a larger group.”
Further to the acquisition, the Japanese insurer plans to set it footsteps in other places outside Japan to accelerate the growth of the company. Amlin’s management would continue working as a separate entity after the acquisition, suggests the deal. The deal is expected to reach an agreement very soon.
“We have always had a very high regard for MSI, our strategies and corporate values are closely aligned, and this transaction will now provide Amlin with the increased scale and financial muscle that will be required for long-term success in our industry,” said Philipps, CEO of Amlin. He also added,”It delivers excellent value for shareholders, improved career prospects for our employees and enhanced continuity and security for our clients,” during the press release.