W.R. Berkley Corp., a Greenwich-based commercial insurance provider, plans to sell 15% of its stock to Tokyo-based property and casual insurance carrier Mitsui Sumitomo Insurance Co. Ltd. (MSI).
MSI has entered into an agreement with a company owned by members of the Berkley family and trusts, for MSI to buy the outstanding common stock through open market purchases or private transactions with third parties.
Once MSI acquires at least 12.5% of the outstanding shares, the Berkley family said it agrees to recommend nominating and electing an MSI director designee to W.R. Berkley’s board of directors.
The agreement will not have any effect on the day-to-day operations of the company, W.R. Berkley said.
“We have deep respect for MSI developed over years of collaborating with them through the company’s re-insurance operations,” said Rob Berkley, president and CEO of W. R. Berkley. “We remain committed to the company’s long-term success and we welcome the opportunity to have MSI as a shareholder.”
As part of the agreement, W.R. Berkley has entered into a cooperation agreement to help MSI with its related regulatory filings, approvals and accounting treatment for its investment.
“We are extremely excited to make an investment in W. R. Berkley,” said Shinichiro Funabiki, president and CEO of MSI.
MSI’s investment is subject to customary regulatory approvals and is anticipated to be completed by the end of March 2026, W.R. Berkley said.
W.R. Berkley’s shares, which trade on the New York Stock Exchange as WRB, rose 6.37% to $70.50 in Friday’s pre-market trading.
