Fairfax Asia, a provider of life, health, property and marine insurance products has made a voluntary conditional cash offer to purchase all of the shares in Singapore Reinsurance (Singapore Re).
The Asian unit of the Canada-based financial group Fairfax Financial currently owns 28.18% stake in Singapore Re alongside the concert group.
Fairfax Asia is seeking to buy a further 71.82% of the total issued shares of Singapore Re for $26 cents per share.
Fairfax intends to gain majority control of Singapore Re and then delist it off the Singapore Exchange (SGX), making it a privately held firm.
Singapore Re has been listed on the main board of the SGX since 1987. The company writes property, liability, miscellaneous accident and marine classes on a facultative and treaty basis with primary focus on business emanating from Asia including the Middle East and Indian Sub-continent.
Singapore Re specialises in the non-traditional liability insurance classes such as professional indemnity, directors’ & officers’ and products’ Liability.
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The performance of Singapore-based reinsurer has been reportedly decreasing in recent years due to fierce competition, volatile underwriting performance, and increasing natural catastrophe exposure.
The complete takeover of Singapore Re will allow Fairfax to establish complementary business operations within the group with both customer and cedent relationships, strengthening its position in the Asian insurance and reinsurance markets.
Fairfax aims to continue the development and expansion of its businesses and seek opportunities on a sustainable basis over long-term.
The company does not have plans to undertake any major changes to the existing Singapore Re business with no job cuts.