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Takeaways
- W.R. Berkley Corp. shares set a record high on Friday after the insurer announced that a Japanese firm will take a 15% stake.
- Mitsui Sumitomo Insurance plans to acquire shares at the open market, and own 15% of the business by the end March 2026.
- The Berkley family will support the nominations of MSI-backed members of the board at various thresholds.
Shares of W.R. Berkley Corporation (WRB) rose more than 7% Friday, leading gainers on the S&P 500 after the line insurance firm said Japan’s Mitsui Sumitomo Insurance (MSI) will take a 15% stake in the company.
The companies stated that MSI would buy shares on the open market and from other third parties, with the goal of achieving a 15% stake at the end of March 2026.
After MSI reaches 4,9%, the Japanese company has committed to voting the shares in favor what the Berkley Family recommends. The Berkleys, with their 16% stake in MSI, will remain the largest shareholder.
The Berkley family said that after MSI surpasses 12.5% of the company, it will support nomination and election for a board member backed by MSI. According to a press release, the family intends to keep two board seats.
The agreement "will not have any effect on the day-to-day operations of the Company, nor will these arrangements reduce the Berkley Family’s commitment to the Company," the news release said Friday.
W.R. Berkley’s shares rose just under 8% in recent days and reached an intraday high of $76.38 during the session.
