Mitsui Sumitomo to Acquire 15% Stake in W. R. Berkley
Deal News | Mar 28, 2025 | Re-Insurance News
Mitsui Sumitomo Insurance Co., Ltd. (MSI), a leading Japanese property and casualty insurance firm, has agreed to acquire 15% of W. R. Berkley Corporation's outstanding common stock. W. R. Berkley is a commercial lines P&C insurance company. The acquisition will not involve direct purchases from W. R. Berkley or the Berkley Family, but rather from third-party investors through open market or private transactions. MSI has also secured a voting arrangement with a Berkley Family-owned entity, which currently holds about 16% of W. R. Berkley's shares. This agreement will allow MSI to vote according to the Berkley Family's recommendations once they hold at least 4.9% of the stock, barring specific circumstances. Once MSI's stake reaches 12.5%, the Berkley Family will support an MSI director's nomination to the Board. The investment awaits regulatory approval and is expected to be completed by March 2026.
Sectors
- Insurance
- Financial Services
Geography
- Japan – Mitsui Sumitomo Insurance is a Japanese property and casualty insurer with plans to expand through strategic overseas investment.
- United States – W. R. Berkley Corporation is based in the United States where it specializes in commercial lines P&C insurance, the focal point of this investment.
Industry
- Insurance – The transaction involves Mitsui Sumitomo Insurance and W. R. Berkley, both operating in the property and casualty insurance sector, reflecting strategic positioning within the industry.
- Financial Services – This sector is relevant as the transaction involves notable investment and corporate finance activities between large insurance firms.
Financials
- 15% – The percentage stake of W. R. Berkley's outstanding common stock MSI plans to acquire.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mitsui Sumitomo Insurance Co., Ltd. | Acquiring Company | Company | A prominent Japanese property and casualty insurer engaging in strategic investments to enhance its global footprint. |
| W. R. Berkley Corporation | Target Company | Company | An American commercial lines property and casualty insurance holding company. |
| Berkley Family | Selling Party (Indirect Involvement) | People | They hold significant share interests in W. R. Berkley and are entering voting arrangement agreements with MSI. |
| Shinichiro Funabiki | Executive | People | President and CEO of MSI, expressing excitement over the strategic investment in W. R. Berkley. |
| Rob Berkley | Executive | People | President and CEO of W. R. Berkley Corporation, welcoming MSI as a shareholder. |