Share Subscription to ACR Capital Holdings Pte., Ltd., Financial Holding Company in Singapore

Apr. 24. 2012
Marubeni Corporation

Marubeni Corporation ("Marubeni") and ACR Capital Holdings Pte. Ltd., ("ACR") have signed an agreement for the issuance and allotment of shares in ACR. As a result of this, Marubeni will be holding about 22% of all outstanding shares of ACR.

ACR is a holding company which has a wholly-owned subsidiary, Asia Capital Reinsurance Group Pte. Ltd (a pan-Asian reinsurance company based in Singapore(* 1)), and affiliates, ACR Malaysia Sdn.Bhd (a reinsurance company based in Malaysia) and ACR ReTakaful Holdings Ltd. (a financial holding company in DIFC, Dubai, with two operational subsidiary retakaful operators respectively in Malaysia and Bahrain). The operators under ACR ReTakaful Holdings Ltd. underwrite Shariah-compliant retakaful business in Asia and the Middle East.

The agreement for this strategic partnership arose against the backdrop of rapid economic development in the Asian insurance market, where demands for more sophisticated insurance products and services by companies located in the region are also correspondingly rising, and which are not yet being adequately served. Both Marubeni and ACR share the view that the environment in Asia is positive for this strategic collaboration.

Since its establishment in 2006, ACR has expanded its market reach and influence in a short period of time. ACR has differentiated itself from its competitors as a pan-Asian risk solutions provider with dedicated expertise and capacity to optimally serve the region.

Marubeni has insurance broking subsidiaries in the United Kingdom, Singapore and Japan, with extensive insurance and reinsurance broking expertise. Furthermore, Marubeni has been looking to leverage on the expertise of a trusted reinsurer to evaluate and design risk protection/transfer programs for their clients.

Marubeni has been examining the possibility of a strategic alliance with a reinsurance company from this point of view. Marubeni believes that it shares common fundamental values and a business philosophy with ACR. Through this investment in ACR, Marubeni aims to expand its reinsurance broking business utilizing the underwriting knowledge and capacity of ACR as well as tap on the pan-Asian reinsurer’s expertise in risk solutions.

In addition, the numerous natural disasters in Asia in recent times, especially in fiscal 2011, have led to the decline of insurance companies’ ability to underwrite risks. This strategic partnership will be able to boost the provision of reinsurance solutions and capacity to the region.

By providing insurance expertise and capacity through ACR for Asian companies, including Japanese companies, Marubeni is confident it will be able to better support its operating activities and make greater contributions to the economic development in the region.

Reinsurance (* 1): This is insurance that a reinsurance company provides to insurance companies where the insurance companies may pass on some or all of the insurance liability they have assumed to help manage the risks they have taken on.

Retakaful (* 2) Reinsurance business that operates in accordance with Islamic law.

Company name: ACR Capital Holdings Pte., Ltd
Location: Republic of Singapore
Established: November 2006
Representative: John Tan Kwang Kherng (Director & Chief Executive)
Holding company whose portfolio includes re-insurance companies and retakaful operators:
Shareholders’ Equity: $ 694.3mil (The fiscal year ended March 31, 2011)
Gross Written Premium: $ 752.4 mil (The fiscal year ended March 31, 2011)
Major Shareholders: 3i Group plc, Khazanah Nasional Berhad, Temasek Holdings (Private) Limited,