W. R. Berkley Stock Soars After Mitsui Sumitomo Investment Signals Long-Term Growth Alignment

W. R. Berkley Corporation WRB shares surged Friday after the company confirmed that Japan's Mitsui Sumitomo Insurance (MSI) will acquire a 15% stake through a newly announced investment and voting agreement.

The stake will be acquired through open market purchases or private third-party transactions. The arrangement also aligns MSI with the Berkley family, which will retain its full ownership stake.

Under the agreement, once MSI acquires 4.9% of outstanding shares, it will vote those shares in accordance with the Berkley family's recommendations — except in certain situations where voting will reflect the broader shareholder base. If MSI reaches a 12.5% ownership stake, it will be entitled to nominate a director to the board, subject to approval through the company's governance process. The Berkley family will continue to hold two seats on the board, maintaining its active leadership role.

The agreements will not impact W. R. Berkley's day-to-day operations or the Berkley family's commitment to the company. They also include enforceable standstill provisions that limit MSI's influence.

Rob Berkley, president and CEO of W. R. Berkley Corp., highlighted the longstanding relationship with MSI, built through years of collaboration in the company's reinsurance operations. "We remain committed to the Company's long-term success and we welcome the opportunity to have MSI as a shareholder," he said. "Their significant investment is a validation of our Company's outstanding performance and growth trajectory."

In connection with the investment, W. R. Berkley entered into a cooperation agreement to assist MSI with necessary regulatory filings and approvals. A special committee of independent, disinterested directors — advised by outside counsel — reviewed, negotiated and approved the deal. The Berkley family had made clear they would not proceed without the committee's recommendation and the approval of the independent members of the board.

WRB Price Action: W.R. Berkley shares are trading higher by 6.47% at $70.57 premarket on the last check Friday.

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