Japanese insurer buys US fronting company for $400 million
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Tokyo-based Mitsui Sumitomo Insurance Co. Ltd. said Wednesday it has agreed to buy Warren, New Jersey-based fronting insurer Transverse Insurance Group LLC.
Mitsui will pay $400 million for the company, which links reinsurers to managing general agents, according to a note on the deal from law firm Willkie Farr & Gallagher LLP, which represents Mitsui Sumitomo.
Transverse, which was founded in 2018 with backing from private equity firm Virgo Investment Group, is headed by Chairman and CEO Erik Matson, who previously worked at various insurers and reinsurers including American International Group Inc., Munich Reinsurance Co. and Allianz SE.
The company is capitalized at $107 million and retains some of the risks it fronts for reinsurers, according to the note.
A Mitsui Sumitomo statement said the deal will allow it to access “the fast-growing specialist managing general agent, wholesale and other broker-led distribution channels for property, casualty, marine and specialty business.”
