KIC, KKR invest $800 million in Samsung Fire & Marine Insurance’s UK deal; ‘stake buyback’ option also secured [fn Market Watch]

[Financial News] Korea Investment Corporation (KIC) and global private equity firm KKR are drawing attention with a joint investment of $800 million in Samsung Fire & Marine Insurance’s acquisition of a controlling stake in UK insurer Canopius. Under the structure, Samsung Fire & Marine Insurance will secure control, while KIC and KKR participate as financial investors (FIs). In particular, an option to repurchase the co-investors’ stakes has also been put in place, leaving open the possibility of a future reshaping of the ownership structure.
According to investment banking (IB) industry sources on the 10th, KIC will invest $300 million in the Canopius acquisition led by Samsung Fire & Marine Insurance. KKR will also put in $500 million through funds it manages. Their expected stakes after the transaction closes are 7.3% and 12.1%, respectively.
Samsung Fire & Marine Insurance will add 40.6% to its existing 40% stake, raising its ownership to 80.6%. The acquisition target is the remaining 60% stake in Fidentia Fortuna Holdings, led by US-based private equity firm Centerbridge Partners. Centerbridge will exit its investment through this transaction.
The co-investment structure is a notable feature. Samsung Fire & Marine Insurance will secure control while sharing the funding burden with KIC and KKR. The shareholders’ agreement also includes call and put options allowing the co-investors’ stakes to be repurchased under certain conditions. Depending on the terms and timing of any future option exercise, Samsung Fire & Marine Insurance could further increase its stake.
KIC’s participation is also noteworthy, as a sovereign wealth fund that invests in overseas assets has directly committed capital to an overseas M&A deal by a Korean financial company.
KKR plans to support efforts to enhance Canopius’s corporate value, drawing on its experience investing in insurance and reinsurance globally.
Canopius is currently a global insurer operating in specialty insurance and reinsurance, based in the UK’s Lloyd’s market. Last year, it recorded gross written premiums of $4.484 billion and pretax profit of $553 million. Its return on equity (ROE) was 21%.
Samsung Fire & Marine Insurance has gradually increased its stake since making its first investment in 2019. With this acquisition of control, it plans to expand the share of its overseas business, currently around 10%, to the mid-20% range.
KIC is also accelerating the expansion of its strategic investments. In the first half of this year, it committed $150 million to the biotech sector and signed investment agreements totaling $400 million with two domestic PEF managers.
IB industry sources said the transaction could set a new precedent for how Korean financial companies finance overseas M&A.
A senior IB industry official added, “This deal is structured so that a Korean financial company secures control of an overseas business while sharing the funding with global institutional investors,” and said, “The terms for repurchasing the co-investors’ stakes and the timing of their exit from the investment will be key variables in the transaction going forward.”

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