ANDIE plans BIG Acquisition
Japan’s leading insurer MS&AD strengthens its Automotive Operations with acquisition of Telematics based solution in the UK.
Aioi Nissay Dowa Insurance Japan (“ADI”) through its European subsidiary, Aioi Nissay Dowa Insurance Europe (“ANDIE”), both part of MS&AD Insurance Group (“MS&AD”), announces the agreement to acquire the majority shareholding in the Gibraltar based Box Innovation Group Limited (“BIG”). BIG is the holding company of Insure the Box Limited (“ITB”), one of the leading Telematics & User Based Solutions innovators in Europe.
MS&AD believes in Telematics based solutions as a key part of its Automotive arm strategy;
The acquisition of BIG will enable ANDIE to strengthen its Automotive business across Europe and also allow MS&AD to exploit this technology through its global platform (outside Japan);
MS&AD believes that in the long-term, Telematics will deliver a better value proposition for customers as well as save lives by promoting safer driving.
ANDIE will acquire 75.01% of the total outstanding shares (on a fully diluted basis) of BIG for 105 million pounds, which is subject to approval by the relevant authorities. The acquisition has been agreed to by the current shareholders of BIG, including Catlin Insurance Company Ltd., BIG’s management shareholders and some former employees. The remaining 24.99% will be retained by BIG’s selected existing management.
MS&AD believes in the technical evolution in the Automotive sector, and that the future mobility trends will lead to a strong increase in demand for connected car solutions and services over the next 10 years.
ANDIE has core competences in motor insurance, automotive related insurance products and mobility solutions. The strong potential for future strategic growth and synergies has also helped underpin the acquisition of BIG. In Japan, MS&AD has already developed various Telematics based solutions and strongly believes in a longer term success story.
Furthermore, MS&AD’s strong strategic partnership with Toyota Motor Corporation and Toyota Financial Services also underlines the strategic importance of this acquisition. This new technology will allow the delivery of user based Telematics solutions for key clients as well as the wider market.
In future, ANDIE plans to manage BIG as an integrated unit within its European operation, whilst retaining the existing leadership, technology and processes to allow maximum growth potential for BIG and its technology.
ANDIE will take over the underwriting of the main parts of ITB’s business. In parallel BIG will be encouraged to develop solutions and underwriting partnerships across Europe.