Invested $300 Million in 2019 and 2020... Third Investment This Time
Solidifying Position as Second-Largest Shareholder in Canopius
Accelerating Entry into the Global Insurance Market
On June 11, Samsung Fire & Marine Insurance announced that it had signed an additional equity investment agreement worth $570 million (approximately KRW 800 billion) with Canopius, an insurance company that is part of Lloyd's, the British insurance syndicate.
This marks Samsung Fire & Marine Insurance's third investment in Canopius, following two previous investments totaling about $300 million in 2019 and 2020. With this latest equity expansion, Samsung Fire & Marine Insurance has solidified its position as the second-largest shareholder in Canopius.
Through this investment, Samsung Fire & Marine Insurance will establish a de facto joint management structure with the Fidensia Consortium, led by Centerbridge, a major shareholder of Canopius and a U.S. private equity fund. The company expects to further strengthen its management capabilities in the global market by expanding its seats on the board of directors and securing substantial authority over key management issues.
Following Samsung Fire & Marine Insurance's strategic investment, Canopius has pursued diversification of its contract portfolio and regional expansion. As of the end of last year, Canopius achieved sales of $3.53 billion and a combined ratio of 90.2%, rising to the top five in the Lloyd's market.
Over the past six years, Samsung Fire & Marine Insurance has accumulated experience and expertise in the Lloyd's market through participation in the Canopius board of directors, reinsurance business collaboration, and the exchange of key personnel. As of last year, the company achieved tangible business results, including approximately KRW 300 billion in reinsurance business collaboration revenue and about KRW 88 billion in equity method gains.
Lee Moonhwa, CEO of Samsung Fire & Marine Insurance, stated, "This additional investment is more than a simple equity investment; it is a strategic milestone for joint management and profit generation in the global market. We will continue to actively expand our overseas business and drive innovation to overcome the limitations of the domestic insurance market and become a global top-tier insurer."
Neil Robertson, CEO of Canopius Group, said, "We sincerely welcome the increased equity stake of Samsung Fire & Marine Insurance, a highly reliable partner from the very beginning to the present. We look forward to further strengthening our partnership based on continued trust in our strategy and values."
Ben Langworthy and Matthew Kabaker, Senior Managing Directors at Centerbridge, commented, "Samsung Fire & Marine Insurance's decision to make an additional investment was made possible by Canopius's successful execution of its strategy and the excellent results achieved over the past three years. We are very pleased to continue the partnership between Canopius and Samsung Fire & Marine Insurance as we embark on a new phase of global growth."
This transaction is subject to customary closing conditions, including regulatory approval. The investment amount includes the equity acquisition price at the time of contract signing and the expected settlement amount in the future. The final investment amount will be determined based on management performance up to the time of regulatory approval.
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