Tokio Marine to Buy Pure Group for 3.1 B. Dollars
Tokyo, Oct. 3 (Jiji Press)--Japanese nonlife insurer Tokio Marine Holdings Inc. <8766> said Thursday it will buy U.S. insurer Pure Group for some 3.1 billion dollars.
The acquisition is expected to be completed in the first quarter of 2020, Tokio Marine said. Pure Group is a property and casualty insurer targeting high-net-worth individuals and families.
The deal is designed to gain a stable source of revenue as Japanese nonlife insurers are struggling with massive benefit payments related to a recent series of natural disasters in Japan, sources familiar with the matter said.
Pure Group, founded in 2006, receives fees for operating a reciprocal insurance market where policyholders exchange their risk with one another. Its customers are wealthy people who have homes worth over one million dollars.
Speaking at a press conference in Tokyo, Satoru Komiya, Tokio Marine president and group chief executive officer, said Pure Group has been the best acquisition candidate due to its sound growth.
[Copyright The Jiji Press, Ltd.]