Hanover, New Hampshire-headquartered White Mountains Insurance Group has agreed to sell its subsidiary, Sirius International Insurance Group, to a Singapore-based investment arm of China Minsheng Investment Corp. for approximately US$2.2 billion, according to a company announcement.
CM International Holding PTE is to pay cash for the transaction, which will help expand China Minsheng’s international insurance business.
"The acquisition…opens doors for Sirius to new opportunities in Asia, especially China," says White Mountains chairman and CEO, Raymond Barrette.
The deal, which is to close within six months, is expected to increase White Mountain’s adjusted book value by approximately US$65 per share, and also increase its undeployed capital by US$1.4 billion to about US$2 billion.
White Mountain says it will review capital management options once proceeds have been received.
China Minsheng Investment was established in Shanghai in 2014 by 59 Chinese enterprises with registered capital of RMB50 billion. (US$8 billion).
It makes strategical investments in financial services and upgrading industrial businesses.