US-based WR Berkley says Mitsui Sumitomo Insurance plans to acquire a 15% stake in the company.

The Berkley family will not sell any of its common stock to Mitsui Sumitomo (MSI) under the deal and the American company says the agreement will not affect day-to-day operations. 

“We have deep respect for MSI developed over years of collaborating with them through the company’s reinsurance operations,” WR Berkley president and CEO Rob Berkley said.

“We remain committed to the company’s long-term success and we welcome the opportunity to have MSI as a shareholder.”

Mitsui Sumitomo, which is part of Tokyo-based MS&AD Insurance Group, is one of the largest personal and commercial lines underwriters in Japan and operates in 41 countries and regions.

WR Berkley was founded in 1967 by William Berkley, who is executive chairman, and is listed on the New York Stock Exchange.

The transaction is expected to close by the end of March next year, subject to regulatory approvals.

“[WR Berkley’s] first-class track record in the US specialty market attracted us in making an investment, and we look forward to bringing our network in Japan, Asia and other selected markets to lead to sustained growth and increased value for both the company and MSI’s investment,” Mitsui Sumitomo president and CEO Shinichiro Funabiki said.

Mitsui Sumitomo says there will be no change to its US operations, which remain outside the scope of the arrangement.