Sompo Holdings Inc. announces sale of Sompo Canopius AG to Centerbridge Partners, L.P. for $952m
Canopius is part of Sompo's wider strategic plan, returning cash to provide Sompo
increased flexibility for its growth ambitions, whilst also creating a secure
future for Canopius
Tokyo/London, Friday 1 September 2017 – Sompo Holdings Inc. ("Sompo") (Tokyo Stock
Exchange: 8630), a major
international insurer headquartered in Japan, today announced that it has
agreed to sell Sompo Canopius AG ("Canopius") to a consortium led by
Centerbridge Partners, L.P. ("Centerbridge"), for $952 million. Canopius is a specialist (re)insurer predominantly
acting in the Lloyd's market.
The transaction is
expected to close in the first quarter of 2018, subject to regulatory
approvals. Canopius was acquired by Sompo
Japan Nipponkoa Insurance Inc., a wholly-owned subsidiary of Sompo Holdings Inc. in 2014, for £594 million.
International's Lloyd's business (previously called Endurance at Lloyd's) will
not be affected by the deal.
Kengo Sakurada, President and Group CEO of Sompo
Holdings Inc., said:
"Following the announcement of the acquisition
of Endurance Speciality Holdings in October 2016, we carefully reviewed the
potential for Sompo Canopius to be integrated into the new global, commercial business platform, Sompo International. However, it
became increasingly clear that the culture and business mix of the two
companies were very distinct and that the combination would not necessarily be advantageous
to either party.
"We are delighted to have reached the agreement
announced today with Centerbridge, one which recognises
the value inherent in Canopius, and takes full advantage of the strengths of
the existing management team. The future of the staff has been a key
consideration in this process. We
believe having a financial partner such as Centerbridge represents a great
opportunity for Canopius to achieve its growth ambitions.
"This transaction returns significant funds to Sompo to pursue our global
strategic objectives through Sompo International whilst also providing Canopius
with a secure and clear strategic future."
Michael Watson, Executive Chairman of Canopius, said:
appreciate all the support that has been given to our company by Sompo during
their period of ownership. We are also very grateful that we have been able to
pursue this new path for our business. Despite the change in ownership,
the deep mutual respect between our two businesses will continue through the
collaborative working relationship we will maintain with Sompo as we go
Sompo Holdings Inc.
was advised by Macquarie Capital and GC Securities (financial advisers) and Mishcon de Reya LLP (legal advisers).
For further information:
Newgate Communications (PR adviser to Sompo
/ Charlie Chichester / Clotilde Gros
+44 (0)20 7680 6500 email@example.com
Notes to Editors
About Sompo Holdings Inc.
Sompo Holdings Inc. (‘Sompo') is one of the top three
insurers in Japan and has a global network of businesses. Listed and
headquartered in Japan with a growing presence in the UK the company engages in
the provision of insurance services, operating through Domestic Property and
Casualty Insurance, Domestic Life Insurance, Overseas Insurance as well as
other services including pensions, asset management and healthcare businesses.
Sompo was founded in Japan in 1888 and has since built
a global network in 32 countries operating in Europe, North America, Central
and South America, Asia and Oceania, and the Middle East and Africa. The
Company employs more than 78,000 people worldwide.
Learn more about the Group by visiting www.sompo-hd.com/en/