Tokio Marine Holdings Inc. (TMHD) will acquire all outstanding shares of Delphi Financial Group Inc., a financial services holding company comprised of specialty life and P&C insurance and insurance-related businesses. The transaction is for $43.875 per Class A share and $52.875 per Class B share in cash, through TMHD's wholly owned subsidiary, Tokio Marine & Nichido Fire Insurance Co. Ltd. (TMNF). In addition, Delphi shareholders will receive $1 in cash per share, pursuant to a one-time special dividend from Delphi for each share of Class A and Class B stock they own. The total transaction value is around $2.7 billion and is expected to close in the second quarter of 2012.

Tokio says the acquisition of Delphi complements Tokio Marine’s presence in the U.S. P&C market, and marks its entrance into the U.S. life insurance market. Delphi has three main subsidiaries. Delphi’s life insurance subsidiary, Reliance Standard Life Insurance Co., underwrites a diverse portfolio of group employee benefits and also markets asset accumulation products, primarily fixed annuities, to individuals. Its P&C subsidiary, Safety National Casualty Corp., is the longest tenured insurer in the excess workers’ compensation market in the United States. A third subsidiary, Matrix Absence Management Inc., provides integrated disability and absence management services to the employee benefits market.

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