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Sompo taking over A&A
Posted on Friday, 09 February 2018 14:57
Bermuda-headquartered property and casualty insurance provider Sompo has signed on the dotted line to pick up Italian agriculture insurance player A&A.
No financial details of the transaction, which is subject to the green light from regulatory authorities and slated to close by March of this year, have been disclosed.
Tokyo-listed Sompo’s chief executive John Charman said the target would make a good addition to the firm’s AgriSompo platform, which is designed to tailor agricultural risk management services to local market requirements.
He cited the target’s technical expertise within the agricultural insurance segment, as well as its significant market share, as factors behind the decision to acquire.
A&A chairman Giovanni Giudici added: “Through Sompo International’s extensive agriculture insurance capabilities and financial investment in new technologies, we will be able to provide enhanced risk solutions to the Italian agriculture community.”
He also said he expects the move to generate value for clients.
A&A’s current staff, structure and management team will remain in place upon closing of the transaction.
Sompo is active in 32 countries throughout Europe, North America, South and Central America, Asia, Oceania and the Middle East and Africa.
The company is active through a number of subsidiaries, including Sompo Japan Nipponkoa Insurance, which it claims is one of the leading property and casualty insurance groups in the Japanese domestic market.
Sompo has already carried out one acquisition this year, having agreed to pay an undisclosed consideration for Tennessee-based surety insurance underwriter holding company Lexon Surety in early January.
According to Zephyr, the M&A database published by Bureau van Dijk, there have already been 77 deals targeting insurance carriers announced worldwide during 2018 to date.
The most valuable of these was agreed on 22nd January, when American International Group committed to acquire Bermuda-based Validus Holdings for USD 5.56 billion.
© Zephus Ltd