KIC to Invest $300 Million in Acquisition of Stake in British Insurer Canopius

Joint investment with Samsung Fire & Marine Insurance and KKR

The Korea Investment Corporation (KIC) will participate alongside Samsung Fire & Marine Insurance in the acquisition of British insurer Canopius. It plans to invest about $300 million and hold approximately 7% of the company after the deal closes.

KIC said on Tuesday that it would take part in the deal led by Samsung Fire & Marine Insurance as a strategic investment to support Korean companies’ expansion overseas.

Samsung Fire & Marine Insurance headquarters

Canopius is an insurer specializing in specialty insurance, property and casualty insurance, and reinsurance. Reinsurance is insurance in which an insurer transfers part of the risks it has assumed from policyholders to another insurer. KIC said Canopius is considered one of the leading insurers in the Lloyd’s market in the United Kingdom. Based in London, Lloyd’s is the world’s largest specialist insurance market, where numerous insurers underwrite a wide range of risks.

Samsung Fire & Marine Insurance secured a 40% stake in Canopius last year. This time, it will acquire the remaining 60% together with KIC and Kohlberg Kravis Roberts (KKR).

Alternative investment firm KKR will participate as a co-investor, investing $500 million to acquire an approximately 12% stake. Alternative investments are investments in assets other than traditional ones such as stocks and bonds.

The acquisition is seen as giving Samsung Fire & Marine Insurance a foundation to expand its business into the U.S. and Asia-Pacific insurance markets, as well as Lloyd’s. It is also expected to help the Korean insurance industry expand and diversify its business into global markets.

Park Il-young, president of KIC, said, "This investment has laid the groundwork for Korean insurers to make a full-fledged entry into global markets," adding, "It will give the Korean insurance industry as a whole a new engine for growth." He continued, "We will continue to vigorously pursue strategic investments to help Korean companies prove their value in overseas markets."

Park also added, "This investment, involving leading global asset managers, is an example of the global financial market’s confidence in Korean capital and companies," and said, "If a strategic investment account is established at KIC in the future, it will provide a positive backdrop for foreign investors considering investing in Korea."

Meanwhile, KIC decided to invest $150 million in the biotechnology sector in the first half of this year. Separately, it also executed part of a $400 million investment commitment made with two domestic private equity fund (PEF) managers.

This content was produced with the assistance of AI translation services.