(Bloomberg) -- MS&AD Insurance Group Holdings Inc.agreed to buy Lloyd’s of London insurer Amlin Plc for about 3.47billion pounds ($5.3 billion) in its biggest acquisition, joiningan overseas deal spree by Japanese peers. Amlin shares surged.
The Tokyo-based company’s MitsuiSumitomo Insurance Co. unit will pay 670 pence a share incash for the London-based insurer, MS&AD saidTuesday. The deal represents a 36 percent premium on Monday’sclosing price and is 2.4 times the firm’s net tangible book value,the highest multiple paid for any Lloyd’s insurer, Amlin ChiefExecutive Officer Charles Philipps said on a conference call withreporters.
The takeover adds to a flurry of deals among Amlin’s peers inthe Lloyd’s and Bermuda insurance markets, while extending about of overseas expansion by insurers from Asia, where growth hasslowed. Japan’s Sumitomo Life Insurance Co. and MeijiYasuda Life Insurance Co. agreed to buy U.S. firms in thepast two months.
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