Japan-based insurer Sompo Japan Insurance Inc will purchase privately-owned British company Canopius for $970 million (JPY100 billion). The transaction aims to expand Sompo's overseas business, according to a report cited by The Star Online.

Business daily Nikkei reported that the two insurance firms would announce the acquisition deal in the coming week. Nikkei did not cite a source, the report said.

Based from the Nikkei report, Sompo said it would complete the acquisition of all the Canopius shares by the end of 2014. The Japanese non-life insurer also planned to retain the British firm's 560 managers and employees to gain expertise for Western markets, the report added.

Canopius operates in Europe, Bermuda, Singapore, Australia, and the US. The firm operates in the London insurance market of Lloyd's, the report stated.

Nikkei reported that the acquisition came as the local car insurance and casualty insurance market became saturated. After the 2008 US-led global crisis, foreign insurers had been working to consolidate their businesses, the report explained.