Mitsui Sumitomo Insurance’s proposal to acquire First Capital Insurance Limited of Singapore from Fairfax has cleared all necessary regulatory approvals.
The transaction will see the Japanese insurer acquire Fairfax’s 97.7% stake in First Capital, which offers motor, fire, marine, and other general insurance products in the Singaporean market. It is expected to be finalised by December 28.
The acquisition, estimated to be worth US$1.6 billion, was first announced in August, as Mitsui Sumitomo and Fairfax entered a strategic partnership. The two firms have agreed to work together in writing several general insurance classes, as well as reinsurance.
With the purchase, Mitsui Sumitomo enlarges its footprint in the fast-growing Southeast Asian market, while Fairfax retains quota share exposure to First Capital’s insurance portfolio.
Ramaswamy Athappan will remain as CEO of First Capital, and he will also hold the chairmanship of Fairfax’s Asian arm.
“Mitsui Sumitomo's scale in Asia will give First Capital, under the continued leadership of Mr. Athappan, the opportunity to grow significantly,” Prem Watsa, chairman and CEO of Fairfax, previously commented on the deal.
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