Canopius responds to rumours over Sompo acquisition
Canopius, the privately-owned re/insurance group which operates from Lloyd’s, has responded to rumours that it is to be bought by Japanese insurer Sompo for £600 million.
The rumours come as Canopius’ chief group executive, Inga Beale, is appointed as the first female CEO of Lloyd’s.
According to speculation, NKSJ, the company which owns Sompo, said that making a play for Canopius was among the “potential” M&A deals it was considering.
Canopius said that “as a matter of practice” it does not comment on market rumours or speculation, but released a statement saying: “The attractions of Lloyd's as a platform for the transaction of global specialty insurance and reinsurance have rarely been more highly prized than they are currently. Against that background it is to be expected that Canopius would be the subject of potential acquisition interest, recognising the strength of our franchise and reputation, our scale, our position as one of a handful of privately owned Lloyd’s businesses and the ten year duration of our private equity backing.”
NKSJ is one of Japan's biggest insurance groups; its casualty and property insurance business reported around $21.9 billion in net premiums written, an equivalent of sales, in the year ended March 31.
The purchase of Canopius comes after a spate of recent acquisitions by Japanese companies, which demonstrates Japan’s aggressive push to expand overseas.
Last week, Sumitomo Mitsui Banking Corporation (SMBC) – Japan’s second biggest bank by market value, agreed to purchase Flagship Rail Services, United States – a Chicago-based railroad leasing business – from Perella Weinberg Partners subject to regulatory approval. The transaction is valued at $1.1 billion.
