MS&AD Insurance to acquire First Capital Insurance in $1.6B deal
Fairfax Financial Holdings Limited and Mitsui Sumitomo Insurance Company Limited of Tokyo, Japan, a subsidiary of MS&AD Insurance Group Holdings, announce that they have entered into a binding agreement to pursue a global strategic alliance. Mitsui Sumitomo will acquire Fairfax's 97.7% interest in First Capital Insurance Limited of Singapore, with Fairfax retaining a meaningful quota share exposure to First Capital's insurance portfolio. The cash purchase price for Fairfax's interest in First Capital is $1.6B, which will result in a realized net investment gain of approximately $900M after tax. Ramaswamy Athappan will continue as First Capital's Chief Executive Officer, while continuing to retain his responsibilities as Chairman of Fairfax Asia. Closing of the First Capital transaction is subject to applicable regulatory approvals, including the approval of the Monetary Authority of Singapore and the Financial Services Agency of the Government of Japan, and is expected to occur late in 2017 or early 2018.