Mitsui Sumitomo to buy Singapore insurer for $1.6 billion
This is the biggest takeover by a Japanese insurer in Southeast Asia.
Starved of growth in their ageing home market, Japanese insurance firms have been aggressively expanding globally.
In the last two years, the insurers have struck multibillion dollar deals, especially in the United States.
MSI, the core firm of MS&AD Insurance Group Holdings, said it is paying 3.3 times book value for First Capital, Singapore's largest property and casualty insurer.
That compares with property and casualty insurance companies globally listed under the Thomson Reuters classification trading at an average 1.65 times book. ■