A revolutionary acquisition by Mitsui Sumitomo Insurance has been confirmed – Artemis.bm

The rumored acquisition of the hybrid P&C program, forward and risk adjustment of Transverse Insurance Group by MS&AD Holdings, through its Mitsui Sumitomo Insurance division has now been confirmed, as the companies jointly announced this morning.

The story was reported over the weekend by our sister Reinsurance Newswith a price tag of $400 million including an additional $150 million that is said to be worth Mitsui Sumitomo.

Pricing hasn’t been announced today, but sources we’ve spoken to since the weekend indicate that it’s rumored to be in the right place for the Transverse.

As we explained on Monday, Mitsui Sumitomo’s attraction to Transverse reflects its interest in being a link, in the insurance risk to reinsurance capital value-chain, which is a very important part of the industry.

Transverse takes a hybrid approach to its P&C business, which also offers advanced services and risk management.

The company works with many sources of reinsurance capital, including other markets such as insurance specialists (ILS), and has always established itself as an underwriting platform with access to risk, helping to connect underwriters to power and power, or investors, to risk .

Transverse has always aimed to facilitate access to risk-adjusted insurance-linked funds (ILS) and investors, as well as traditional sources of reinvestment.

Mitsui Sumitomo Insurance will acquire the New Jersey headquarters of Transverse from its owner Virgo Investment Group.

Mitsui Sumitomo explained in the morning that, “This acquisition emphasizes MSI’s ambitions for long-term growth and is an important step in expanding its presence in the US and diversifying its income by acquiring fast-growing specialists (‘MGA’), distributors. and other distribution channels, casualty, marine, and broker-led specialty businesses.

On Transverse, Mitsui Sumitomo said, “Its recent growth and the strength of MGA’s supplier pipeline have allowed it to take a significant share of the US market in a short period of time.”

The US hybrid industry is projected to grow by 30% in 2016 to 2021, the company said, driven by growth and demand in the E&S market.

“This creates a huge opportunity for companies like Transverse, which combines a dynamic, profitable, and risky brand, with a genuine interest and passion for writing, and a commitment to maintaining the risk of writing software,” he said.

“MSI’s ownership of Transverse expands its presence in the US market and provides quick and easy access to a fast-growing market by acquiring leading and underwriting funds from Transverse and its established network, creating a new source of diversified profits for the Group’s operations. ,” they he explained again.

The company said the acquisition of Transverse builds on Mitsui Sumitomo’s other regional assets and supports its global growth strategy, which focuses on “synergistic benefits” between its various subsidiaries.

Transverse is also expected to be strengthened by Mitsui Sumitomo Insurance’s strong and financial strength, “creating a differentiated proposition and competitive advantage, and allowing it to explore new opportunities for growth,” the company said.

This is a great opportunity for Transverse to position itself as a market leader, with firepower behind it.

As well as exploring global opportunities with the help of a major player, since the same hybrid program, advanced services and changes can become more important globally as companies focus on better communication of risk and investment.

Tamaki Kawate, Director, Head of International Business of Mitsui Sumitomo Insurance Co., Ltd. -the world’s leading (re)insurance business. It not only reflects our commitment to continued growth in the US but also highlights our differentiated approach to sustainability and the financial strength of our parent company. This acquisition will allow Transverse to accelerate its competitive advantage by gaining access to new product lines and distribution opportunities, meeting the long-term needs of its MGAs and (re)insurance partners more effectively. “

Erik Matson, Chairman, CEO, Co-Founder of Transverse commented on the acquisition, “We are all very excited about this development, and what it will mean for our future growth opportunities. This is a very important event for everyone involved in our growth journey and we are excited finding a home at MSI. Its strength, its ratings, and its international network will support our development and our skills. This purchase promotes the success of our business and reiterates the importance of our hybrid model as an important tool that allows our partners to expand the market.”

Also read: MS&AD’s interest in Transverse demonstrates the importance of being a connector.

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