W.R. Berkley Corp. shares jumped after the insurer confirmed Japanese property and casualty carrier Mitsui Sumitomo Insurance Co. plans to acquire a 15% stake through open market or private transactions with third parties.
The announcement sent W.R. Berkley’s stock climbing about 7% as investors viewed the move as a vote of confidence in the Greenwich, Connecticut-based company’s performance. The stake would be worth approximately $3.77 billion based on W.R. Berkley’s recent market capitalization of about $25.14 billion.
Under the agreement, MSI will not purchase shares directly from the Berkley family, which owns approximately 16% of the company through trusts and family-owned entities. Once MSI acquires 4.9% of the outstanding shares, it will vote according to Berkley family recommendations in most circumstances. After reaching 12.5% ownership, MSI will gain the right to nominate one director to W.R. Berkley’s board, subject to approval.
Rob Berkley, president and CEO, said the partnership could leverage MSI’s international network to help drive growth. Shinichiro Funabiki, MSI’s president, cited W.R. Berkley’s “first-class track record in the U.S. specialty market” as the key attraction for the investment.
The transaction requires regulatory approvals and is expected to complete by March 2026. The companies emphasized that the agreement won’t affect W.R. Berkley’s daily operations or diminish the Berkley family’s commitment, which includes maintaining two representatives on the board.
Founded in 1967, W.R. Berkley ranks among the largest commercial lines writers in the U.S. MSI, part of MS&AD Insurance Group, operates in 41 countries and traces its roots back to predecessor companies founded in 1893 and 1918.
