(Aug 24): Mitsui Sumitomo Insurance Company has agreed to buy Singapore-based non-life insurer First Capital Insurance from Canada's Fairfax Financial Holdings for US$1.6 billion ($2.2 billion), underscoring growing appetite among Japanese insurers to expand outside their home markets.

Mitsui Sumitomo Insurance, the core firm of MS&AD Insurance Group Holdings, and Fairfax will also explore a broad global partnership in various areas, including reinsurance relationships, Fairfax said in a statement on Thursday.

It said the all-cash purchase will result in a realized net investment gain of approximately US$900 million after tax.

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