"We want the current management to stay, so we are paying for a control premium," he said.The deal is the second-largest ever by a Japanese insurer, after Tokio Marine Holdings Inc's $7.5 billion purchase of U.S. insurer HCC Insurance Holdings Inc last year. "If Sompo goes abroad, gets solid know-how of insurance products, and brings it back to Japan, synergies will emerge. Endurance shares soared 35 percent on Tuesday on reports of the deal.Citi Group and Morgan Stanley acted as financial advisers for Sompo and Endurance, respectively. "(In Endurance) we've got a diamond in our hand," he said. "But if this alone isn't enough to capture growth in the U.S. market, we won't rule out further M&As."

Source: The Star October 05, 2016 21:33 UTC