Key Takeaways
- • Korea Investment Corporation (KIC) will invest $300 million and KKR $500 million, totaling $800 million, as co-investors alongside Samsung Fire & Marine Insurance's acquisition of a controlling stake in UK insurer Canopius, according to IB industry sources.
- • Samsung Fire & Marine Insurance will raise its ownership of Fidentia Fortuna Holdings from 40% to 80.6% by acquiring the remaining 60% stake led by Centerbridge Partners, which will exit through the deal.
- • Post-closing expected stakes are 7.3% for KIC and 12.1% for KKR, with call and put options allowing co-investor stakes to be repurchased under certain conditions.
- • Canopius reported 2025 gross written premiums of $4.484 billion, pretax profit of $553 million and a 21% return on equity.
- • IB sources say the structure may set a precedent for how Korean financial companies finance overseas M&A.
Summary
Korea Investment Corporation (KIC) and global private equity firm KKR are co-investing $800 million in Samsung Fire & Marine Insurance's acquisition of a controlling stake in UK insurer Canopius, according to Financial News citing investment banking industry sources on November 10. Under the structure, Samsung Fire & Marine Insurance will secure control of the business while KIC and KKR participate as financial investors.
KIC will invest $300 million in the transaction, and KKR will invest $500 million through funds it manages. Their expected stakes after closing are 7.3% and 12.1%, respectively. Samsung Fire & Marine Insurance will add 40.6% to its existing 40% holding, lifting its ownership to 80.6%. The target is the remaining 60% stake in Fidentia Fortuna Holdings, which is led by US private equity firm Centerbridge Partners; Centerbridge will exit its investment through the transaction.
The shareholders' agreement includes call and put options that allow the co-investors' stakes to be repurchased under certain conditions. Depending on the terms and timing of any option exercise, Samsung Fire & Marine Insurance could further increase its stake, leaving the long-term ownership structure open to change. IB sources described the terms of the repurchase and the timing of co-investor exits as key variables going forward.
Canopius is a global specialty insurance and reinsurance company based in Lloyd's of London. It recorded gross written premiums of $4.484 billion and pretax profit of $553 million in the most recent year, with a return on equity of 21%. KKR plans to support efforts to enhance Canopius's corporate value, drawing on its global insurance and reinsurance investing experience.
Samsung Fire & Marine Insurance first invested in the company in 2019 and has gradually increased its stake since. With control, it plans to raise the share of overseas business, currently about 10%, to the mid-20% range. KIC's participation is notable because it is a sovereign wealth fund directly committing capital to an overseas M&A deal by a Korean financial company. IB sources said the transaction could set a new precedent for how Korean financial companies fund overseas acquisitions. KIC is also expanding strategic investments, having committed $150 million to biotech and signed agreements totaling $400 million with two domestic PEF managers in the first half of the year.
KIC will invest $300 million in the transaction, and KKR will invest $500 million through funds it manages. Their expected stakes after closing are 7.3% and 12.1%, respectively. Samsung Fire & Marine Insurance will add 40.6% to its existing 40% holding, lifting its ownership to 80.6%. The target is the remaining 60% stake in Fidentia Fortuna Holdings, which is led by US private equity firm Centerbridge Partners; Centerbridge will exit its investment through the transaction.
The shareholders' agreement includes call and put options that allow the co-investors' stakes to be repurchased under certain conditions. Depending on the terms and timing of any option exercise, Samsung Fire & Marine Insurance could further increase its stake, leaving the long-term ownership structure open to change. IB sources described the terms of the repurchase and the timing of co-investor exits as key variables going forward.
Canopius is a global specialty insurance and reinsurance company based in Lloyd's of London. It recorded gross written premiums of $4.484 billion and pretax profit of $553 million in the most recent year, with a return on equity of 21%. KKR plans to support efforts to enhance Canopius's corporate value, drawing on its global insurance and reinsurance investing experience.
Samsung Fire & Marine Insurance first invested in the company in 2019 and has gradually increased its stake since. With control, it plans to raise the share of overseas business, currently about 10%, to the mid-20% range. KIC's participation is notable because it is a sovereign wealth fund directly committing capital to an overseas M&A deal by a Korean financial company. IB sources said the transaction could set a new precedent for how Korean financial companies fund overseas acquisitions. KIC is also expanding strategic investments, having committed $150 million to biotech and signed agreements totaling $400 million with two domestic PEF managers in the first half of the year.
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