Tokio Marine buys Philly's Reliance Standard for $2.7B

Tokio Marine Holdings says it will buy Philadelphia-based Reliance Standard Life Insurance Co. and its owner, Delphi Financial Group, for $2.66 billion, or $43.875/share (class A) and $52.875 a share (class B). Statement here.

That's a premium to the company's recent trading prices, and about equal to its 2007 all-time highs, which is good news for most Delphi owners, led by Allianz Global, Fidelity Investments, and other institutional shareholders, and also for executives led by Robert Rosenkrantz, who founded Delphi in 1987 and enlarged it with the purchase of Reliance Standard (previously owned by Saul P. Steinberg's ill-fated Reliance Group Holdings, among others), Safety National, and other insurers. 

Delphi paid Rosenkranz $8 million last year, and he held company stock and share units worth more than $50 million at current prices, according to company filings with the Securities and Exchange Commission. 

Tokio Marine is the Japanese insurer that bought Philadelphia Insurance Co for $4.5 billion, enriching its largest shareholder, the founding Maguire family and their charities, notably St. Joseph's University, three years ago. 


In its statement, Tokio said it sees "very little overlap" between Philadelphia Insurance and Delphi, each of which employ close to 2,000 nationally. That ought to mean workers keep their jobs, and employment could rise as Tokio expands the businesses.

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