Samsung buys stake in Lloyd's insurer Canopius

Samsung Fire and Marine Insurance CEO Choi Young-moo, left, shakes hands with Canopius Chairman Michael Watson in London on May 2 after the Korean non-life insurer invested $150 million (170 billion won) in Fortuna Topco, which owns Canopius. / Courtesy of Samsung Fire and Marine Insurance

By Kim Bo-eun

Samsung Fire and Marine Insurance has made an investment in Canopius, one of the top 10 insurers in Lloyd's of London, the non-life insurance unit of Samsung Group, said Monday.

Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London.

The Korean firm said that Samsung's property and casualty (P&C) insurance unit invested $150 million (170 billion won) in Fortuna Topco, which owns Canopius, on May 2.

The investment, subject to regulatory consents, is set to close in the third quarter of this year.

Through the transaction, the Korean firm will become a member of Canopius' board, taking part in the company's management. Canopius is a Switzerland-based global specialty insurer and reinsurer.

"Samsung's unrivalled financial security and extensive license network complements that which we enjoy at Lloyd's,” Canopius Chairman Michael Watson said in a statement.

“Together we can offer innovative customer-focused insurance solutions across the globe," Samsung Fire and Marine CEO Choi Young-moo said. "We plan to work closely with the management of Canopius and share in their in-depth knowledge of the Lloyd's market. This is a significant step forward for SFMI's long-term strategy and will allow us to thoroughly prepare to become a competitive, world-class P&C insurance business."

Canopius is set to become a top five player in Lloyd's, through its acquisition of U.S. P&C insurer AmTrust's Lloyd's business.