Main

Mitsui to Participate in Reinsurance Asset Management Business

Oct. 20, 2016


Main Contents

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) had previously agreed to acquire 15% of the shares of New Ocean Capital Management Limited (NOCM), a reinsurance asset management company operated by XL Group Ltd ("XL", Head Office in Bermuda and listed at NYSE), a major insurance and reinsurance firm, and Stone Point Capital (SPC), a major private equity fund manager in the fields of insurance and financial services, from NOCM's existing shareholders. Mitsui has recently completed the acquisition.

NOCM, founded in 2013 in Bermuda, is an asset management company entrusted with the management of funds in relation to so called insurance-linked securities ("ILS"), financial products that involve investment primarily in catastrophic risk.

Mitsui, while participating in this asset management business, has also agreed to invest an initial US$100 million (including an existing investment of US$21 million) in funds whose management is entrusted to NOCM, with investment planned from the second half of the fiscal year ending March 2017 through the fiscal year ending March 2018.
Mitsui, by expanding the NOCM business in partnership with XL and SPC, will offer extra capacity for catastrophic risk to primary insurance companies.

Mitsui has built an extensive track record of sales of alternative financial products*1 since 2001 through its subsidiary, Japan Alternative Investment Co., Ltd. ("Japan Alternative Investment", Head Office: Tokyo, President: Atsushi Katayama). Mitsui plans to start the sales of funds managed by NOCM to investors in Japan with the aim of offering a diverse range of investment opportunities.

Profile of NOCM

Company Name New Ocean Capital Management
Location Bermuda
Establishment July 2013
Shareholders XL: Largest shareholder (holds majority), Mitsui: 15%,
SPC-managed fund (Trident Fund), NOCM management team
Business Activities Asset management business of funds undertaking reinsurance of catastrophic risks backed by collateralized funds.
Representative Mr. Chris McKeown, CEO

*1 Alternative financial products: Financial products other than traditional assets, such as listed stocks and bonds. Examples include hedge funds, real estate funds, private equity (PE) funds, and CAT bonds.
*2 CAT bonds: Catastrophic risk related securities offered and subscribed mainly by institutional investors.

Mitsui's Investment Scheme

Mitsui's Investment Scheme

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Soichi Nakayama
Telephone: +81-3-3285-7566
Facsimile: +81-3-3285-9819