Tokio Marine to buy Pure Group for $3bn

Written by Adam Cadle

03/10/2019

Tokio Marine Holdings has announced the signing of a definitive agreement to acquire 100% of the outstanding shares of Privilege Underwriters, Inc. and its subsidiaries (“Pure Group”), a US insurance group specialised in the US High Net Worth insurance market for $3.1bn.

The acquisition is expected to be completed in the first quarter of 2020, subject to regulatory approvals.

As a global insurer, Tokio Marine Group has been focusing on expanding scale and profitability of its international business as the key growth driver of the overall group.

“We gave been pursuing organic growth and strategic M&A initiatives in both developed and emerging markets in order to capture growth opportunities in the global insurance market and to build a further diversified business portfolio,” the insurer said in a statement.

“The acquisition will contribute to sustainable profit growth and capital efficiency of Tokio Marine Group through Pure Group’s continued high growth potential in the world’s largest P&C insurance market, as well as its stable fee-based business and low capital intensity.”

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