SOMPO ¥637.5 billion acquisition of Endurance Specialty

Overview:

• Japan's third-largest non-life casualty insurer SOMPO has proposed to acquire Endurance Specialty, a US property and casualty insurer, for $6.3 billion.
• The transaction will boost SOMPO's US market share in the insurance sector, which is in line with the insurer's expansion strategy in the US market. 
• In 2013, SOMPO bought Britain's Canopius Group, a Lloyd's of London insurer, for approximately $1 billion.
• The transaction is the second largest made by a Japanese insurer, following Tokio Marine's $7.5 billion acquisition of HCC insurance, another US insurer, in 2015.
• Citi Group acted as financial advisers for SOMPO. Morgan Stanley represented Endurance Specialty as financial adviser.

Wai Yee Tsang - Journalist