Mitsui Sumitomo Insurance (MSI) will acquire London-listed Lloyd’s insurer and reinsurer Amlin for £3.47 billion ($7.58 billion).

Japanese insurers have been active in the insurance industry’s global consolidation drive, seeking overseas acquisitions to fuel growth.

MSI CEO Yasuyoshi Karasawa says his group was keen to acquire an insurer in the Lloyd’s market. The deal will create a “world-leading insurance company, with an international business anchored in the Lloyd’s market”.

“The combination will accelerate MSI’s strategy of growing its international business,” Mr Karasawa said.

MSI is a principal subsidiary of Tokyo-based MS&AD Insurance Group, which was formed in a three-way merger of Japanese insurers in 2010.

It has a portfolio of non-life insurance businesses, including marine, aviation, property and casualty. It operates in 42 regions, including through a Lloyd’s platform in London. 

MSI reported net income of ¥105.23 billion ($1.24 billion) in the year to March 31. 

Amlin has three core business units: reinsurance, marine and aviation, and property and casualty. It reported net income of £236.4 million ($516.5 million) last calendar year.

Having earlier declared Amlin was “not for sale”, CEO Charles Philipps now says the merger is “extremely compelling”.

“We have always had a very high regard for MSI… and this transaction will now provide Amlin with the increased scale and financial muscle required for long-term success in our industry,” he said.

The acquisition is the latest in a flurry of huge takeovers by Japanese insurance giants.

In June Tokio Marine announced it would acquire US-based HCC Insurance for $US7.5 billion ($10.66 billion); in July Meiji Yasuda Life Insurance agreed to buy US-based StanCorp Financial Group for $US5 billion ($7.1 billion); and last month Sumitomo Life moved to acquire US insurer Symetra Financial for $US3.8 billion ($5.4 billion).

Last year Dai-ichi Life bought US company Protective Life Corporation for $US5.7 billion ($8.1 billion).

MSI says it is open to other acquisition opportunities.

The purchase of Amlin leaves just four UK-listed Lloyd’s insurers – Beazley, Hiscox, Lancashire and Novae – which may feel exposed because the industry’s global consolidation shows no sign of slowing.

UK analyst Eamonn Flanagan told The Independent newspaper: “There’s a possibility all the remaining UK-listed Lloyd’s of London members will get bought eventually.”