Japanese property and casualty insurer Sompo Holdings has signed a share transfer agreement to sell its wholly owned subsidiary, Sompo Canopius, to Fortuna Holdings for $952m.
Fortuna Holdings is a private equity consortium led by Centerbridge Partners.
In October last year, Sompo has acquired Bermuda-based property and casualty insurer Endurance Specialty Holdings and renamed it as Sompo International. Endurance is now operating on the Lloyd's of London insurance market.
Canopius, which has the same Lloyd’s business, is creating an overlap with Sompo International which would affect the former’s strategic consistency, business efficiency and brand unification.
Considering all the above factors Sompo has decided to sell Canopius and operate the fully-integrated Sompo International as its underwriting platform globally.
The revenue resulting in the sale of Canopius would be used for expanding the insurance business, including acquisitions internationally.
Sompo said that it will continue associating with Canopius through business partnership.
Further, Sompo is planning to reorganize its Europe and US businesses.
In May 2014, the Japanese firm acquired Canopius, operating in the Lloyd's market, to broaden its international footprint.
Canopius has contributed significant revenue for the Europe and US businesses of the Sompo Group.
Newyork-based Centerbridge, is an investment management firm, which invests its funds in private equity, distressed and special situations and real estate.
The deal is subject to receipt of regulatory approval and is anticipated to be closed by first quarter of 2018.
Photo:Sompo Holdings to sell Canopius for $952m. Image: Courtesy of adamr at FreeDigitalPhotos.net.