The Wall Street Journal: Fairfax sells Singapore’s First Capital to Mitsui Sumitomo for $1.6 billion

Canada’s Fairfax Financial Holdings Ltd. confirmed Wednesday evening that it sold Singapore-based property-and-casualty insurer First Capital to Japanese insurer Mitsui Sumitomo Insurance Co. for $1.6 billion.

Fairfax, a Toronto-based holding company founded in 1985 by one of Canada’s most prominent investors, Prem Watsa, will get a 25% stake in First Capital’s insurance portfolio.

First Capital Chief Executive Ramaswamy Athappan will remain in his role while continuing to serve as chairman of Fairfax’s Asia operations.

The deal is part of a new global partnership between the two firms that will give Fairfax FFH, +0.66% access to Japan’s insurance market, while allowing Mitsui — a subsidiary of Japan’s MS&AD Insurance Group Holdings Inc.

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