Tokio Marine to buy Delphi Financial in $2.7B deal

AP News
Posted: Dec 21, 2011 10:13 AM
Tokio Marine to buy Delphi Financial in $2.7B deal

Tokio Marine Holdings Inc. is buying financial services company Delphi Financial Group Inc. in a deal valued at $2.7 billion to strengthen its position in the U.S. property and casualty insurance market and enter the life insurance market.

Delphi shares jumped $18.50, or 72.8 percent, to $43.93 in premarket trading.

Tokio subsidiary Tokio Marine & Nichido Fire Insurance Co. Ltd. will pay $43.875 per Class A share and $52.875 per Class B share in cash.

Tokio said Wednesday that it will finance the buyout with Tokio Marine Group's available cash and borrowings.

A one-time special dividend of $1 in cash will be paid to Delphi stockholders for each Class A and Class B share they own after the transaction closes.

The acquisition is expected to close in the second quarter.