Sompo Japan Insurance is reportedly weighing the acquisition of UK-based insurer Canopius Group, an insurance and reinsurance firm operating in the Lloyd's of London insurance market, in a deal worth nearly JPY100bn ($971.8m).

NKSJ Holding, the parent of Sompo, said that the Japanese insurer is considering the proposed acquisition that was first reported by Japan’s business daily, the Nihon Keizai Shimbun.

The company is expected to make a announcement once a final decision had been made.

In a statement, NKSJ also said that the intended move was among the potential merger and acquisition deals that the company has been considering.

The deal, if successful, would be the biggest in a line of takeover transactions at Lloyd’s of London in recent past, and will help Sompo branch out from its home marketplace.

Canopius, controlled by private equity fund Bregal Capital, is one of major Lloyd’s underwriters by premiums after it purchased Omega in April last year.

It currently operates in Europe, the US, Singapore and Australia.

Sompo Japan Insurance is a major property insurance company in Japan. Sompo offers a variety of financial services including life insurance, securities, asset management as well as venture capital businesses.