W. R. Berkley Corporation Confirms Mitsui Sumitomo Insurance Co. Intends to Purchase 15% of the Company’s Shares in Open Market or Private Transactions From Third Parties
W. R. Berkley (NYSE: WRB) has confirmed that Mitsui Sumitomo Insurance Co. (MSI) plans to acquire 15% of WRB's outstanding common stock through open market or private transactions with third parties. The Berkley Family, which holds approximately 16% of WRB's shares, will not sell any stock to MSI.
Under the agreement, once MSI acquires 4.9% of shares, they will vote according to Berkley Family recommendations. After reaching 12.5% ownership, MSI will gain the right to nominate one director to WRB's board, subject to approval. The Berkley Family will maintain two board representatives.
The investment requires regulatory approvals and is expected to complete by March 2026. The arrangement includes customary standstill restrictions and will not affect WRB's daily operations. Both companies view this as a strategic partnership, with potential opportunities to leverage MSI's international presence for growth.
W. R. Berkley (NYSE: WRB) ha confermato che Mitsui Sumitomo Insurance Co. (MSI) intende acquisire il 15% delle azioni ordinarie in circolazione di WRB attraverso transazioni sul mercato aperto o private con terze parti. La Famiglia Berkley, che detiene circa il 16% delle azioni di WRB, non venderà alcuna azione a MSI.
Secondo l'accordo, una volta che MSI acquisirà il 4,9% delle azioni, voterà secondo le raccomandazioni della Famiglia Berkley. Dopo aver raggiunto una partecipazione del 12,5%, MSI avrà il diritto di nominare un direttore nel consiglio di amministrazione di WRB, soggetto ad approvazione. La Famiglia Berkley manterrà due rappresentanti nel consiglio.
L'investimento richiede approvazioni normative ed è previsto che si completi entro marzo 2026. L'accordo include restrizioni di standstill consuete e non influenzerà le operazioni quotidiane di WRB. Entrambe le aziende vedono questa come una partnership strategica, con potenziali opportunità per sfruttare la presenza internazionale di MSI per la crescita.
W. R. Berkley (NYSE: WRB) ha confirmado que Mitsui Sumitomo Insurance Co. (MSI) planea adquirir el 15% de las acciones ordinarias en circulación de WRB a través de transacciones en el mercado abierto o privadas con terceros. La Familia Berkley, que posee aproximadamente el 16% de las acciones de WRB, no venderá ninguna acción a MSI.
Según el acuerdo, una vez que MSI adquiera el 4,9% de las acciones, votará de acuerdo con las recomendaciones de la Familia Berkley. Tras alcanzar una participación del 12,5%, MSI obtendrá el derecho a nominar a un director en la junta de WRB, sujeto a aprobación. La Familia Berkley mantendrá dos representantes en la junta.
La inversión requiere aprobaciones regulatorias y se espera que se complete para marzo de 2026. El acuerdo incluye restricciones de standstill habituales y no afectará las operaciones diarias de WRB. Ambas empresas ven esto como una asociación estratégica, con oportunidades potenciales para aprovechar la presencia internacional de MSI para el crecimiento.
W. R. Berkley (NYSE: WRB)는 Mitsui Sumitomo Insurance Co. (MSI)가 WRB의 유통 주식의 15%를 공개 시장 또는 제3자와의 사적 거래를 통해 인수할 계획이라고 확인했습니다. Berkley 가족은 WRB의 주식 약 16%를 보유하고 있으며 MSI에 주식을 판매하지 않을 것입니다.
합의에 따라 MSI가 4.9%의 주식을 인수하면 Berkley 가족의 권고에 따라 투표하게 됩니다. 12.5%의 지분에 도달하면 MSI는 WRB 이사회에 이사 한 명을 추천할 권리를 얻게 되며, 이는 승인에 따라 달라집니다. Berkley 가족은 이사회에 두 명의 대표를 유지합니다.
이 투자는 규제 승인을 필요로 하며 2026년 3월까지 완료될 것으로 예상됩니다. 이 arrangement는 일반적인 스탠드스틸 제한을 포함하며 WRB의 일상적인 운영에 영향을 미치지 않습니다. 두 회사는 이를 전략적 파트너십으로 보고 있으며, MSI의 국제적 존재를 활용하여 성장할 수 있는 잠재적인 기회를 가지고 있습니다.
W. R. Berkley (NYSE: WRB) a confirmé que Mitsui Sumitomo Insurance Co. (MSI) prévoit d'acquérir 15 % des actions ordinaires en circulation de WRB par le biais de transactions sur le marché ouvert ou privées avec des tiers. La famille Berkley, qui détient environ 16 % des actions de WRB, ne vendra aucune action à MSI.
Selon l'accord, une fois que MSI aura acquis 4,9 % des actions, elle votera selon les recommandations de la famille Berkley. Après avoir atteint une participation de 12,5 %, MSI obtiendra le droit de nommer un administrateur au conseil d'administration de WRB, sous réserve d'approbation. La famille Berkley conservera deux représentants au conseil.
L'investissement nécessite des approbations réglementaires et devrait être finalisé d'ici mars 2026. L'accord comprend des restrictions de standstill habituelles et n'affectera pas les opérations quotidiennes de WRB. Les deux entreprises considèrent cela comme un partenariat stratégique, avec des opportunités potentielles d'exploiter la présence internationale de MSI pour la croissance.
W. R. Berkley (NYSE: WRB) hat bestätigt, dass Mitsui Sumitomo Insurance Co. (MSI) plant, 15% der ausstehenden Stammaktien von WRB über den offenen Markt oder private Transaktionen mit Dritten zu erwerben. Die Berkley-Familie, die etwa 16% der WRB-Aktien hält, wird keine Aktien an MSI verkaufen.
Gemäß der Vereinbarung wird MSI, sobald sie 4,9% der Aktien erworben hat, gemäß den Empfehlungen der Berkley-Familie abstimmen. Nach Erreichen einer Beteiligung von 12,5% erhält MSI das Recht, einen Direktor in den Vorstand von WRB zu nominieren, vorbehaltlich der Genehmigung. Die Berkley-Familie wird zwei Vorstandsvertreter behalten.
Die Investition erfordert regulatorische Genehmigungen und soll bis März 2026 abgeschlossen sein. Die Vereinbarung umfasst übliche Standstill-Beschränkungen und wird die täglichen Abläufe von WRB nicht beeinträchtigen. Beide Unternehmen betrachten dies als strategische Partnerschaft, mit potenziellen Möglichkeiten, die internationale Präsenz von MSI für Wachstum zu nutzen.
- Strategic partnership with major Japanese insurer MSI validates WRB's market position
- Potential for international growth through MSI's network in Japan and Asia
- Berkley Family maintains significant ownership and control with 16% stake
- No share dilution as purchase will be through open market or third parties
- MSI will gain significant voting power and board representation
- Complex voting arrangement may impact corporate decision-making
- Long implementation timeline extending to March 2026
- Regulatory approval requirements could pose execution risks
Insights
MSI's planned acquisition of a 15% stake in W.R. Berkley represents a significant strategic development for both companies. The transaction structure is particularly noteworthy - MSI will purchase shares through open market or private transactions rather than from the Berkley Family or the company directly, avoiding dilution while potentially creating positive share price pressure.
The sophisticated voting arrangement effectively maintains the Berkley Family's influence despite introducing a major new shareholder. Once MSI acquires 4.9%, they'll generally vote according to Berkley Family recommendations, preserving strategic continuity. After reaching 12.5% ownership, MSI gains Board representation while the Berkley Family maintains its two Board seats.
This transaction creates a powerful cross-border insurance alliance between WRB's specialty insurance expertise and MSI's substantial Japanese and Asian presence. The explicit mention of leveraging MSI's international network suggests WRB will gain enhanced access to global markets - a significant competitive advantage in the fragmented specialty insurance sector.
The standstill provisions and special committee review demonstrate strong corporate governance, protecting both existing shareholders and the company's operational independence. The anticipated timeline (completion by March 2026) and regulatory approval requirements indicate a measured, deliberate approach to this significant partnership.
This transaction represents a sophisticated governance structure that balances multiple stakeholder interests. The investment arrangement includes carefully crafted voting mechanisms that maintain the Berkley Family's influence while accommodating MSI's significant ownership position.
The governance safeguards are particularly robust: a special committee of three independent directors reviewed the transaction, and the deal incorporates customary standstill provisions directly enforceable by WRB. This prevents potential overreach by MSI while still allowing meaningful engagement.
The voting mechanism contains subtle but important protections - even when MSI reaches full 15% ownership, their voting power remains subject to Berkley Family recommendations with exceptions where proportional voting applies. This preserves management continuity while providing MSI appropriate influence.
Board composition will evolve strategically, with MSI gaining a single director position once they reach 12.5% ownership, subject to the Nominating Committee's approval. This measured approach to Board representation proportional to ownership stake reflects governance best practices.
For investors, this transaction offers the strategic benefits of a major partnership while maintaining the existing control structure that has historically delivered strong performance. The governance architecture creates alignment between MSI and the Berkley Family without disrupting the successful management approach that has driven WRB's specialty insurance success.
MSI also entered into a voting arrangement with a company that is owned by the Berkley family and trusts for their benefit, which holds approximately
Under the terms of the agreements being entered into between MSI and the Berkley Family, once MSI acquires
The agreements between MSI and the Berkley Family will not have any effect on the day-to-day operations of the Company, nor will these arrangements reduce the Berkley Family’s commitment to the Company.
Under the agreements with the Berkley Family, MSI has also agreed to customary standstill restrictions relating to the Company that are also directly enforceable by the Company.
“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 Corporation. “We remain committed to the Company’s long-term success and we welcome the opportunity to have MSI as a shareholder. Their significant investment in the Company’s shares is a validation of our Company’s outstanding performance and growth trajectory, and we are excited to have regular conversations with them about opportunities to leverage their international presence to help the Company drive sustainable stockholder value.”
“We are extremely excited to make an investment in W. R. Berkley,” said Shinichiro Funabiki, President and CEO of MSI. “Their first-class track record in the
In connection with the Investment and Voting Arrangement, the Company entered into a cooperation agreement to assist MSI with its related regulatory filings, approvals and accounting treatment for its investment. A special committee of the Company’s Board of Directors, composed of three independent and disinterested directors and advised by independent legal counsel, reviewed, negotiated, considered and recommended these agreements and related matters for the Company, which were approved by the independent and disinterested directors of the Company’s Board. Prior to the formation of the special committee, the Berkley Family indicated that they would not proceed with the arrangements with MSI absent the recommendation of the special committee and the approval of the independent and disinterested directors of the Board.
MSI’s investment is subject to customary regulatory approvals and is anticipated to be completed by the end of March 2026.
The description of the agreements between MSI, the Berkley Family and/or the Company are qualified in their entirety by reference to the full text of the agreements attached as exhibits to the Form 8-K to be filed by the Company later this morning. A copy of the Form 8-K, once filed, can be found on the Investor Relations section of our website.
About W. R. Berkley Corporation
Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in
About MSI
Mitsui Sumitomo Insurance Co., Ltd., a key entity of the MS&AD Insurance Group, is one of the largest personal and commercial lines writers in
Forward-Looking Statements
This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2025 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to, the success of our new ventures or acquisitions and the availability of other opportunities, our ability to attract and retain key personnel and qualified employees, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause actual results of the industry or our actual results for the year 2025 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. Any projections of growth in the Company’s revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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Karen A. Horvath
Vice President - External Financial Communications
(203) 629-3000
Source: W. R. Berkley Corporation
FAQ
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