Tokio Marine Holdings, through its wholly owned subsidiary Tokio Marine & Nichido Fire Insurance, has entered into a definitive agreement with Philadelphia Consolidated Holdings under which the former will acquire all the outstanding shares of Philadelphia Consolidated for $61.50 per share in cash.
The $4.7 billion transaction is expected to close in the fourth quarter of 2008.
The acquisition of Philadelphia Consolidated, a property and casualty insurance company, marks Tokio Marine Holdings’s (TMHD) significant expansion into the US market and complements Tokio Marine’s recent international growth initiatives. With 47 offices and approximately 1,400 employees across the US, Philadelphia Consolidated will provide Tokio Marine with a strong platform for their property and casualty (P&C) business in the US.
Shuzo Sumi, president of Tokio Marine, said: Expansion of revenue and profits from international business is the driving force of Tokio Marine’s mid to long term growth strategy. The acquisition of Philadelphia Consolidated is consistent with our aspirations of expanding globally and realizing a well-balanced business portfolio.