According to Thomson Reuters data, last year Japanese insurers paid a premium of 27.4% on average over their target's stock price one week, ahead of the announced M&A deals. Chinese insurers paid an average 14.2% premium, while U.S. insurers paid 9.5%. "The Japanese insurers don't have to chase a 15-20 percent return on equity, a much lower return is attractive and acceptable," she said. Sompo's deal is the second-largest ever by a Japanese insurer, after Tokio Marine Holdings Inc's US$7.5 billion purchase of U.S. insurer HCC Insurance Holdings Inc last year. Total shareholder returns for all insurance companies are increasing, so that's a positive," said Koichi Niwa, an insurance analyst at SMBC Nikko Securities.

Source: The Edge Markets October 06, 2016 11:37 UTC