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09/08/2022

Nikkei Says That Mitsui Sumitomo Insurance Will Pay $400 Million For A Reinsurance Broker In The United States




Nikkei Says That Mitsui Sumitomo Insurance Will Pay $400 Million For A Reinsurance Broker In The United States
According to the Nikkei business daily, Mitsui Sumitomo Insurance Company, a part of Japan's MS&AD Insurance Group Holdings, will spend approximately $400 million to acquire US reinsurance broker Transverse.
 
According to the Nikkei, the Japanese property insurer intends to obtain knowledge of the reinsurance broker industry, which might contribute in the creation of an insurance market specialised in domains such as cybercrime.
 
According to the Nikkei, Mitsui Sumitomo Insurance may pay up to an additional $150 million, based on the US company's revenues following the deal, with an announcement likely by the end of the month.
 
MS&AD stated in a statement that it was exploring numerous company investment opportunities, including some highlighted in the media, but that no decisions had been made.
 
It stated that anything that needed to be reported will be announced as soon as it was decided.
 
According to the Nikkei, Transverse, based in New Jersey, works as a broker for reinsurance across the United States, obtaining around 5% of insurance premiums as commission by connecting insurers and reinsurance providers.
 
The increased danger of natural catastrophes, terrorism, and cybercrime in the United States has resulted in a surge in sales of insurance supplied by insurers that specialise in specific industries such as transportation and medicine.
 
However, insurance against risks such as cyberattacks is not widely available in Japan, according to the Nikkei.
 
(Source:www.milliniumpost.com)

Christopher J. Mitchell

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