Mitsui Sumitomo Insurance Company, Limited (“MSI”), has reached an agreement with Amlin plc, an insurance holding company that operates insurance businesses globally, centered on Lloyd's in the United Kingdom, to acquire Amlin.
Amlin's board of directors has unanimously announced its recommendation of the acquisition.
MSI said that it would acquire 100 percent of the shares of Amlin for approximately 3.468 million GBP (approximately JPY635 billion) – a premium of 36.0 percent over Amlin's closing price on September 7.
Subject to the receipt of approvals from the relevant regulators, the parties plan to close the transaction between January 2016 to March 2016.
Commenting on the acquisition, Yasuyoshi Karasawa, the president and chief executive officer of MSI, said, “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. 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 it being part of a substantially larger group.”
He added, “We look forward to welcoming Amlin's management team and employees to the MSI organisation. In particular, we are excited about the opportunity to benefit from the strategic insight that Charles Philipps and his colleagues will be able to provide in our international business following completion of the proposed transaction.”
Commenting on the acquisition, Charles Philipps, Amlin's chief executive, said, “We believe that this combination is extremely compelling. 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. It delivers excellent value for shareholders, improved career prospects for our employees, and enhanced continuity and security for our clients.
“I am confident that, with our combined skills and geographic coverage, we will continue to go from strength to strength. We believe that our respective Lloyd's, Bermudian, and European businesses fit well together and will allow increased development opportunities. MSI's presence in the ASEAN region and its ambitions in the United States clearly offer very exciting prospects for Amlin.
“We are looking forward to working closely with MSI's management and the MSI teams with whom we will be combining.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].