Tokio Marine Pays Delphi a Premium as Japan Insurers Look Abroad

Tokio Marine Holdings Inc. agreed to pay a 71 percent premium in its $2.7 billion cash bid for the U.S.’s Delphi Financial Group Inc. as Japanese insurers face waning demand from an aging population at home.

Japan’s second-largest casualty insurer’s bid for the Wilmington, Delaware-based company that sells workers’ compensation and group-life insurance is the industry’s third-biggest bonus for a cash takeover of more than $1 billion since at least 1995, according to data compiled by Bloomberg. Shares of Tokio Marine fell 2.7 percent to 1,695 yen as of 11:54 a.m. in Tokyo, while Delphi soared 73 percent in New York.