Tokio Marine said it will purchase U.S. insurer Delphi Financial Group for $2.7 billion and is eyeing other acquisition targets, as Japan's No.2 property-casualty insurer looks to expand outside its mature home market and diversify geographic risks.Relatively unscathed by the European debt crisis and armed with a strong yen, Japanese non-life insurers have been active acquirers overseas, with their names regularly appearing on lists of bidders for cross-border auctions.Tokio Marine said it would pay $43.875 for each class A share of Delphi Financial, compared with the last traded price in New York of $25.43."Some investors are going to have an issue with the price, saying it's too expensive, but it's typical of Tokio Marine to pay high prices to get companies it sees as having strong growth prospects," said an insurance sector analyst at a foreign brokerage in Japan, who is not authorised to talk to the media.
Delphi Financial Group, Inc. (Delphi) is a holding company whose subsidiaries provide integrated employee benefit services. Shares of DFG remained unchanged at $25.43. Resistance level is $43.50 and support level is $40.
Delphi Financial Group, Inc. (Delphi) is a holding company whose subsidiaries provide integrated employee benefit services. Shares of DFG remained unchanged at $25.43. Resistance level is $43.50 and support level is $40.
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