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Japan's MS&AD agrees to buy UK insurer Amlin for $5.34B

MS&AD Insurance Group Holdings on Tuesday said it has agreed to buy U.K. rival Amlin for 3.47 billion pounds ($5.34 billion), in the fourth major international deal in as many months by Japanese insurers expanding overseas.

Japan's insurers are ratcheting up the scale and pace of acquisitions driven by the need to diversify risk exposure geographically and secure growth beyond an ageing home market.

MS&AD, which runs property and life insurance businesses at home and abroad, said it would pay 670 pence per share to buy all of Amlin, representing a 36 percent premium over Monday's closing share price.

Amlin, a specialist in property, casualty, marine and aviation insurance, has a stock market value of $3.8 billion.

MS&AD said it expects to close the deal in the January-March quarter, pending regulatory approval.

The deal follows a string of acquisitions by MS&AD rivals.

In June, Tokio Marine Holdings said it had agreed to buy U.S. speciality insurer HCC Insurance Holdings for $7.5 billion, in what would be the biggest M&A deal this year by a Japanese company.

In July, Meiji Yasuda Life Insurance agreed to buy StanCorp Financial Group Inc for $5 billion, and last month, Sumitomo Life agreed to buy U.S insurer Symetra Financial Corp for about $3.8 billion.