The boards of Tokio Marine & Nichido Fire Insurance and Kiln have reached an agreement on the terms of a recommended cash acquisition of Kiln by the former to be implemented by an amalgamation under the Bermuda Companies Act.

The acquisition price of GBP0.15 per Kiln Share values the entire issued and to be issued share capital of Kiln at approximately GBP442.2 million in aggregate.

Tokio Marine & Nichido Fire Insurance (TMNF) sees Kiln as playing a pivotal role in the expansion of its international underwriting operations and in enhancing its existing overseas activities. Working with Kiln management, TMNF intends to develop a joint growth strategy and create a major underwriting platform for international commercial insurance and reinsurance in the UK, US, Continental Europe and Asia.

Shuzo Sumi, president of TMNF, said: We have enjoyed a close and long-lasting business relationship with Kiln since its formation in 1962 and believe we share the same fundamental values and business philosophy. This agreement represents an important milestone in our stated strategy to expand internationally and we believe Kiln, with its underwriting expertise, skilled employees and strong brand, represents the perfect partner.