Offer values Lloyd’s insurer at £442m
The Board of Lloyd’s insurer Kiln is to recommend a 150 pence per share acquisition bid by Tokio Marine & Nichido Fire Insurance Co.
The cash offer values Kiln at just over £442m.
Tokio Marine sees Kiln as pivotal in the expansion of its international underwriting operations and in enhancing its existing overseas activities.
“Tokio Marine has a high regard for the management and underwriting teams within Kiln and values highly the culture that has made Kiln the successful business that it is. It is Tokio Marine’s intention, therefore, to retain the culture, identity and brand of Kiln.”
Tokio Marine intends to develop a joint growth strategy and create a major underwriting platform for international commercial insurance and reinsurance in the UK, US, Continental Europe and Asia.
The Kiln board said it intends to recommend unanimously that Kiln shareholders vote to approve the acquisition at the Special General Meeting,
Mr. Shuzo Sumi, president of Tokio Marine, said: “We have enjoyed a close and long-lasting business relationship with Kiln since its formation in 1962 and believe we share the same fundamental values and business philosophy.
“This agreement represents an important milestone in our stated strategy to expand internationally and we believe Kiln, with its underwriting expertise, skilled employees and strong brand, represents the perfect partner. We are very excited to be working with Kiln and look forward to a long and successful collaboration.”
Mr. Edward Creasy, group chief executive of Kiln, said: “The Kiln Board believes the Acquisition represents an excellent outcome for Kiln, its shareholders, and employees.
“We believe Kiln’s strategy will be facilitated by becoming part of a major international group, which recognises the strength of our brand, respects our existing culture and which will provide exciting opportunities for Kiln’s employees.
“We believe that Tokio Marine, with its established national and international presence, its strong balance sheet and matching values will provide Kiln with excellent opportunities in all these respects. We look forward to an exciting future working with Tokio Marine.”
