Mitsui Sumitomo announces acquisition of Transverse

The deal brokered will cost $400m

Mitsui Sumitomo Insurance Company has officially announced that it will acquire the US reinsurance broker Transverse Insurance Group for $400m.

An additional payment of $3m will be paid in advisory and other fees bringing the total acquisition cost to $410m. However, based on the earn-out clause, a certain amount of payment will be paid that is dependent on the future performance of Transverse. 

According to the Japanese insurer, this will be a good opportunity to capture the growth of the US Managing General Agents (MGA) market.

Transverse is a non-life insurer that delegates certain functions and authorities to MGAs and transfers risks underwritten by MGAs to reinsurers.

Earlier this week, a report said that Mitsui Sumitomo was mulling the acquisition of Transverse.