Shanghai-based Fosun International has signed an equity purchase agreement with Ironshore to acquire 20% stake in the US insurer for $463.83m.
Upon completion of the acquisition, Fosun will become the largest shareholder of Ironshore.
The acquisition will help further expand the Group’s insurance business and strengthen its capability to access long-term high-quality capital.
Fosun International chairman Guo Guangchang said the company has been making determined efforts to establish insurance as the core business.
"Our strategic investment in Ironshore represents another milestone for Fosun and will enable Fosun to further expand its insurance business and strengthen its comprehensive financial capabilities," Guangchang added.
Ironshore intends to use all the proceeds from the share issuance to fund repurchases of outstanding ordinary shares from existing shareholders, including existing long-term private equity shareholders.
The company offers broker-sourced specialty commercial property and casualty coverages for varying risks on a global basis through its multiple international platforms.
Ironshore CEO Kevin Kelley said: "Fosun brings a global perspective with valuable Asian market connections combined with a very strong investment management track record. "
Fosun noted that it has invested more than one third of its total assets in insurance business including investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance and Fidelidade Group, Portugal’s largest insurance company.
Image: Fosun to acquire 20% interest in Ironshore. Photo: courtesy of adamr/FreeDigitalPhotos.net.