Fairfax agrees $1.6bn sale of Singapore-based First Capital to Mitsui Sumitomo

By zaymalz malz

Canadian conglomerate Fairfax Financial Holdings Ltd. has confirmed the sale of its Singapore-based property and casualty insurance company First Capital to Mitsui Sumitomo, a Japanese insurer.

The deal will see 97.7% of First Capital sold for a sum of US$1.6bn, over three times higher than the company’s book value.

"Mitsui Sumitomo and Fairfax share the same long-term vision and values," said Masahiro Matsumoto, Senior Executive Officer of Mitsui Sumitomo.

"We look forward to building our partnership with Fairfax to expand on our complementary global strengths and, in particular, with Mr Athappan to continue building First Capital."

See Also:

The deal signifies a new global strategic partnership between the two firms that will provide Fairfax with access to Japan’s insurance markets, whilst Mitsui Sumitomo will have greater influence in the US.

"We are very excited to become partners with Mitsui Sumitomo," said Prem Watsa, Chairman and Chief Executive Officer of Fairfax.

"Mitsui Sumitomo's scale in Asia will give First Capital, under the continued leadership of Mr. Athappan, the opportunity to grow significantly.

“Mr Athappan championed this transaction, based on his strong belief that it was the best way for First Capital to continue to grow successfully while also creating a valuable long-term partnership for the Fairfax group."

The deal is expected to close around the turn of the year, subject to regulatory approval from the relevant authorities including the Monetary Authority of Singapore and the Financial Services Agency of the Government of Japan.


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI