Sompo to Acquire Service Insurance Companies

Company and Transaction Overview

On July 7, 2026, Sompo International Holdings Ltd. (“Sompo”) announced a definitive agreement to acquire Service Insurance Companies (“Service Insurance”), one of the nation’s leading specialists exclusively focused on workers’ compensation insurance, by one of its US subsidiaries.

• The transaction is subject to certain regulatory and other customary closing conditions.

This acquisition creates a compelling opportunity to broaden Sompo’s underwriting capabilities and presence across products, customer segments and distribution channels within the attractive small and medium-sized enterprise (“SME”) market and General Agents marketplace.

• Service Insurance brings together a differentiated distribution platform, “best-in-class” claims capabilities, and a complementary focus on the SME segment.

Service Insurance will serve as a flagship for Sompo’s workers’ compensation business.

• Brad Davis, current President of Service Insurance, will continue leading the business for Sompo.

Founded in 1982, Service Insurance specializes in workers’ compensation coverage.

• Offering a range of services including underwriting, claims management, and loss control, Service Insurance helps support clients and their employees.
• Service Insurance had ~$166mm of statutory capital & surplus as of December 31, 2025 and wrote over $300mm of premium in 2025.

Sompo is a global provider of commercial and consumer property, casualty, and specialty insurance and reinsurance with ~10,000 employees.

• Sompo refers to the brand under which Sompo International Holdings Ltd., a Bermuda-based holding company, together with its consolidated subsidiaries, operates its global property and casualty (re)insurance businesses.
• Sompo is an indirect wholly-owned subsidiary of Sompo Holdings, Inc., one of the leading P&C groups in the world with excellent financial strength.
  • Ratings of “A+” (Superior) from A.M. Best (XV size category) and “A+” (Strong) from Standard & Poor’s.
• Shares of Sompo Holdings, Inc. are listed on the Tokyo Stock Exchange.

Howden Capital Markets & Advisory Role

HCMA is acting as exclusive financial advisor to Service Insurance; key roles and responsibilities include:

• Development of a tailored M&A strategy and marketing plan, including the identification of ideal buyers.
• Creation of marketing materials and financial model to support the M&A sale process.
• Managing a highly competitive and tight process, including coordination of all due diligence.
• Assisting in the negotiation of key transaction terms and conditions, including driving an optimal outcome for shareholders.
• Providing objective advice and acting as a confidant to Service Insurance throughout the process.

This transaction further solidifies HCMA’s position as a market leader in workers’ compensation insurance carrier M&A.