Reuters: Private Equity: UPDATE 1-Marubeni to buy 22 pct stake in Singapore reinsurer ACR

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UPDATE 1-Marubeni to buy 22 pct stake in Singapore reinsurer ACR Apr 20th 2012, 05:30 Fri Apr 20, 2012 1:30am EDT * Marubeni to pay around $250 mln for 22 pct stake in ACR - source * Marubeni becomes major partner alongside 3i, Khazanah, Temasek * Deal gives Marubeni access to ACR's risk mgt, underwriting skills (Adds source comment, background) By Kevin Lim SINGAPORE, April 20 (Reuters) - Japanese trading conglomerate Marubeni Corp is buying a 22 percent stake in Singapore reinsurer ACR Capital Holdings in a move that will provide ACR with new capital, the Singapore firm said on Friday. ACR did not disclose the amount of Marubeni's investment, but a source with knowledge of the matter said it will pay around $250 million, becoming a major shareholder alongside existing investors British private equity firm 3i, Malaysia's Khazanah Nasional Bhd and Singapore state investor Temasek Holdings. The source was not permitted to speak publicly about the deal and therefore did not want to be identified. The deal is the latest in a growing list of insurance sector transactions in Asia by Japanese firms. MS&AD, Japan's largest property-casualty insurer by revenue, recently struck a deal for a 26 percent stake in Max New York Life, India's sixth-largest life insurer based on premium income, for 27.3 billion rupees ($530.72 million). Marubeni's investment underlines its growing reinsurance ambitions and follows the launch last year in Singapore of its subsidiary business brokering between insurers and reinsurers. "This investment enhances the capabilities of our existing reinsurance-related businesses operating in Tokyo, Singapore and London," Hikaru Minami, chief operating officer of Marubeni's finance, logistics & IT business division, said in the statement. ACR's business lines include providing reinsurance cover for ships, aircraft and large property risks in areas such as power generation, infrastructure, ports, electronics and semiconductors. Marubeni's investment will tap ACR's risk management and underwriting capabilities. ACR was set up in 2006 with capital of around $620 million. 3i and Khazanah were the two cornerstone investors, with 3i investing $200 million of the total, according to the private equity fund's website. ACR has aggregated shareholder funds of more than $1 billion, according to Khazanah's website. Barclays advised ACR on the deal. (Additional reporting by Stephen Aldred in HONG KONG; Editing by Muralikumar Anantharaman) Link this Share this Digg this Email Reprints

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