November 23, 2015 by Canadian Underwriter
Fosun International Limited has completed its acquisition of the remaining 80% equity interest in Bermuda-based Ironshore Inc., which will become an indirect wholly owned subsidiary of the company.
Approvals have been received from all relevant regulatory authorities in the United States, the United Kingdom and other jurisdictions for the acquisition of the remaining 80% ownership interest by way of the merger, notes a joint statement Monday from Fosun International and Ironshore.
Fosun International’s acquisition of the remaining 80% ownership interest follows its acquisition of 20% of Ironshore’s total ownership interest this past February.
An investment group with roots in China, Fosun International has established an insurance platform covering property and casualty, life, reinsurance, labour, general insurance and specialty insurance with presence in major markets around the world. Interests include Peak Reinsurance, Fidelidade Group, Ironshore and Meadowbrook Insurance Group, Inc.
The merger transaction will enable Ironshore “to continue to build upon our international specialty platform and enhance our global brand,” says Ironshore CEO Kevin Kelley. Noting that Fosun International’s financial strength and established investment management approach offers long-term strategic capital to bolster Ironshore’s expansion strategy, Kelley adds that “with our new owner, Ironshore is well-positioned for the future as a global insurance industry leader.
Ironshore is a holding company that, through its subsidiaries, provides broker-sourced specialty commercial p&c coverages for varying risks on a global basis through its multiple international platforms.
Specific products include casualty, mergers and acquisitions, energy, environmental, political risk and trade credit, professional lines, property, kidnap and ransom, marine cargo, surety, marine reinsurance, and war and terrorism. The company’s regions are Asia-Pacific, Canada, Europe, Latin America & Caribbean and the U.K.
“The successful completion of this transaction marks a historical milestone for Fosun’s investments in the specialty insurance industry, as well as the American financial service sector, which significantly boosts our insurance-oriented comprehensive financial capabilities,” says Fosun International chairman Guo Guangchang. “As a long-term shareholder of Ironshore, Fosun will always support the autonomous, stable and healthy development of Ironshore while fully leveraging our global insurance platform resources to enhance Ironshore’s competitiveness in the industry,” Guo emphasizes.
Fosun International notes it is dedicated to bringing its strategy of “insurance-oriented comprehensive financial capability” to a significantly higher level, adding the company’s insurance segment has become the Group’s critical growth driver.
“Now and in the coming year, Fosun will strengthen its integration and collaboration efforts, seeking to establish a cross-region and cross-industry global insurance and financial group,” Guo points out.
In a separate press release release, Fosun International notes “the Group will also assist the prominent management team of Ironshore to manage its investable assets amounting to approximately US$5.1 billion as of September 30, 2015 in a more efficient way and to establish an international platform in the area of specialty insurance.”
In September, A.M. Best Company Inc. issued a report detailing recent M&A activity in the p&c insurance industry. In all, there were 76 announced transactions, with a total value of about US$21 billion, in the first half of 2015.