Advancing into Global Specialist Insurance Market
Samsung Fire & Marine Insurance has made an equity investment in Canopius, one of the 10 insurers in Lloyd’s of London, advancing into the global specialist insurance market, the company announced on May 6.
Specialist insurance covers damage from terrorist attacks and nuclear power plant accidents, damage to artworks and human body parts that traditional insurance policies cannot cover.
Samsung Fire & Marine signed a US$150 million investment contract with Fortuna TopCo, the parent company of Canopius, in London on May 2. The deal gives Samsung Fire & Marine Insurance a seat at the board of Canopius, allowing it to directly participate in the company’s management.
This is meaningful as Samsung Fire & Marine Insurance has moved into the Lloyd’s market, which is the center of the global specialist insurance market. The Lloyd’s market is a specialist insurance market in London with 330-year-long history. It reached about 52 trillion won last year.
Canopius decided to acquire the Lloyd’s market business unit from U.S. insurance company AmTrust last month. The takeover is expected to boost Canopius’s market share in the Lloyd’s market to 5th place next year from 10th place now. In 2014, Korean reinsurer Korea Re entered the Lloyd’s market in partnership with Beazley, a U.K. insurance company. Samsung Fire & Marine Insurance became the first company that directly advanced into the Lloyd’s market by taking over a stake in a Lloyd’s insurer.