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Insurer Amlin in talks with Mitsui Sumitomo

Lloyd's of London insurer Amlin is in advanced talks to be bought by Japan's Mitsui Sumitomo Insurance as a wave of takeovers reshapes the sector.

The FTSE 250 company, which provides a range of insurance cover from airlines to art galleries, is expected to be sold for a significant premium to its market value of 2.45 billion pounds, said people familiar with the matter.

Amlin has hired investment banking advisers Rothschild and Evercore to work on the deal, the people added.

They said Amlin, whose history dates back to 1903, was close to reaching an agreement with Mitsui Sumitomo, which is looking to expand overseas as the Japanese industry faces a tough market at home. An announcement could come within hours.

Mitsui Sumitomo plans to pay for Amlin mainly through cash on hand, funding the remainder with bank loans, according to Nikkei, which first reported the deal.

The mooted transaction comes just two weeks after Charles Philipps, Amlin's chief executive, told reporters the company was "not for sale".

It is the latest sign that an insurance dealmaking wave is gathering momentum. Within the past year at Lloyd's, New York-listed XL bought Catlin while Fairfax of Canada purchased Brit.

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