Mishcon de Reya's Corporate department advised Sompo Japan Nipponkoa Insurance Inc, a subsidiary of Sompo Holdings, on the sale of its specialist UK insurance subsidiary Sompo Canopius to private equity firm Centerbridge Partners for $952 million. The sale is subject to regulatory approval and is expected to close in the first quarter of 2018.
Sompo Holdings is one of Japan’s three largest property and casualty insurers and an increasingly active overseas dealmaker. The disposal of Canopius is part of Sompo’s wider strategic plan, returning cash to provide increased flexibility for its growth ambitions while also creating a secure future for Canopius.
The buying consortium is led by Centerbridge Partners and includes the private investment firm Gallatin Point Capital.
The Mishcon de Reya team was led by Corporate Partner Jonathan Berman and Legal Director Laura Chandler, with assistance from Corporate Tax Partner John Skoulding and Corporate Associate James Spencer.
Jonathan Berman commented: "This was a milestone insurance transaction for the Corporate department at Mishcon de Reya, which gave us the opportunity to demonstrate our strength and expertise in advising on insurance deals of this size and significance. This was a complex negotiation which required round the clock, hands-on management by our team and a seamless relationship with the management team at Sompo."
Laura Chandler, Legal Director added, "It has been hugely rewarding to have worked on this strategically important cross-border transaction for Sompo, involving numerous jurisdictions such as the UK, US, Switzerland, Bermuda and Japan. It demanded close coordination amongst a variety of advisors, Mishcon de Reya and the Sompo team."
Macquarie Capital and GC Securities acted as financial advisors to Sompo.
Royal Bank of Canada acted as a financial advisor to Centerbridge and Freshfields Bruckhaus Deringer LLP as legal advisor.