15% of WR Berkely Shares to Be Acquired by Mitsui Sumitomo Insurance

W.R. Berkely Corp. said Friday that Japanese property/casualty insurer Mitsui Sumitomo Insurance Co. will buy a 15% stake in the company through open market purchases or private transactions with third parties.

W.R. Berkely said the Berkely family will not be selling any of its common stock as part of the deal. MSI will not be buying any shares from the company itself.

The day-to-day operations of W.R. Berkley Corp. will not be affected by this agreement between MSI and the Berkley family, and the family’s commitment to the company will not change.

The Greenwich, Connecticut-based commercial insurer was founded by William R. Berkley in 1967 and went public in 1973. His son, W. Robert Berkley Jr., is now president and chief executive.

“We have deep respect for MSI developed over years of collaborating with them through the company’s reinsurance operations,” said Rob Berkley, in a statement. “We remain committed to the company’s long-term success and we welcome the opportunity to have MSI as a shareholder.

The CEO said the investment is “validation of [W.R. Berkley’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.”

Under the terms of the agreement, the Berkley family will recommend the nomination and election of a MSI “direct designee” to W.R. Berkley’s board of directors when MSI acquires at least 12.5% of outstanding shares. Prior to that threshold – when MSI buys 4.9% of shares – “MSI agrees to vote those shares pursuant to the recommendations of the Berkley Family, except in limited circumstances where the Berkley Family will vote the MSI shares in the same proportion as all of the non-MSI shares are voted.”

MSI’s investment is expected to be completed by the end of the first quarter 2026, pending regulatory approvals.

Topics Mergers & Acquisitions