Wilsons insurance agency buys $200M for first time
Wilson Insurance is buying a $200 million stake in a new insurance company in a deal that marks the first time the company has made a public purchase of a private business.
The deal is the first major acquisition in Wilsmans history, and is valued at more than $400 million, according to the New York Times.
Wilsson said Thursday that the deal would give the company a diversified portfolio of reinsurance, risk management and risk-management products that include reinsurance for life and health.
It is also one of Wilsman’s first major acquisitions in the U.S. It will invest $1.2 billion in the company over the next five years, and Wilsmen said it expects to have a $1 billion cash position by 2021.
The insurance giant said the new investment in its reinsurance business will help the company scale to meet rising insurance costs and to manage risk better.
It said it will also expand its reinsure services for life insurance and health-care companies.
The company has about 40,000 employees in the United States and abroad.
Wills portfolio of insurance includes health insurance and reinsurance products for about 30 countries and for about 4,000 insurance companies in Europe.
Wysons reinsurance and insurance products are also used by health insurers and insurers in other industries.
Wllons, which was founded in 1851, is one of the oldest companies in the world.
Its first insurance product, the Life Insurance Company, was introduced in 1856.
Its reinsurance portfolio covers about 40 countries and more than 500 insurers.
More From Bloomberg: Wilsers reinsurance company will invest nearly $400M in reinsurance businesses, the latest in a wave of private investments by the reinsurer in recent years.
Wiesons said in a statement that the transaction is the largest of its kind by a U.K.-based company and is a result of Wiesens success in increasing the value of reinsurer investments in the last decade.
In the U, Wills insurance businesses provide reinsurance to about 100 million customers.
The reinsurer is the insurance arm of Wills, the largest global reinsurer, with a market capitalization of about $6.2 trillion, according in a 2015 proxy statement.
The company said the transaction will allow it to grow in both value and in global operations, while also strengthening its global footprint and diversifying its insurance portfolio.
Wills is an independent reinsurer that has a broad range of products that cover the insurance industry, such as reinsurance of health and personal injury and reinsurer of property and casualty.
Insurance companies have increasingly turned to private reinsurers as they seek to cut costs, cut costs across the board and diversify risk.
Last year, Wilss was the only company to buy out a private reinsurer when it took over the reinsurance unit of Zurich-based Pivotal Group. Bloomberg