TOKYO, Aug 7 (Reuters) – Mitsui Sumitomo Insurance Company, a unit of Japan’s MS&AD Insurance Group Holdings ( 8725.T ), will spend about $400 million to buy U.S. reinsurance broker Transverse, the Nikkei business daily reported on Sunday.
The Japanese property insurer aims to gain know-how in the reinsurance intermediary business, which could help expand the insurance market specializing in areas such as cybercrime, the Nikkei said.
Mitsui Sumitomo Insurance may pay an additional $150 million, depending on the U.S. company’s earnings after the deal, the Nikkei said, adding that an announcement was expected by the end of the month.
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MS&AD said in a statement that it is considering various business investment opportunities, including those that have been reported in the media, but nothing has been decided. To see also : Website: Your Online Site | After business | Chase.com.
It is said that it will release everything that needs to be released as soon as it is decided.
Transverse, founded in 2018 and headquartered in New Jersey, acts as a reinsurance intermediary across the United States, receiving about 5% of insurance premiums as a commission by connecting insurers and reinsurance companies, according to Nikkei.
In the United States, the increasing risk of natural disasters, terrorism and cybercrime has led to an increase in the sale of policies by insurers specializing in certain areas such as transportation and medicine.
But insurance against such risks as cyberattacks has not become widespread in Japan, Nikkei said.
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Reporting by Yuka Obayashi; Editing by Robert Birsel To see also : Black Girl Magic Digital Summit premieres on Amazon Prime Video on August 27.
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