Mitsui Sumitomo Insurance to Buy Singaporean Nonlife Insurer

Tokyo, Aug. 24 (Jiji Press)--Major Japanese nonlife insurer Mitsui Sumitomo Insurance Co. said Thursday it will purchase First Capital Insurance Ltd., Singapore's largest nonlife insurer. Mitsui Sumitomo, a unit of MS&AD Insurance Group Holdings Inc. <8725>, will acquire an equity stake of 97.7 pct in First Capital from its parent, Fairfax Financial Holdings Ltd. of Canada. The total acquisition price will come to about 175.5 billion yen. Through the acquisition, Mitsui Sumitomo hopes to strengthen its business base in Southeast Asia, where the nonlife insurance market is seen to have potential for growth. First Capital's clients include major companies in the region. It annually achieves a group net profit of around 7 billion yen. Mitsui Sumitomo, which has been doing business in Southeast Asia mainly for individual clients and small businesses there, judged that the Singaporean firm's acquisition will produce significant effects for itself. END