Fosun takes 20% stake in insurer Ironshore

Fosun will invest through its indirectly wholly-owned subsidiary Mettlesome Investment, according to a regulatory filing. Ironshore will use all the proceeds to buy outstanding ordinary shares from existing shareholders, including undisclosed long-term private equity shareholders.

Founded in 2006, Ironshore provides broker-sourced commercial property and casualty coverage through platforms in countries including the US, Australia, Canada, Hong Kong and Singapore. Net profit came to $97.5 million last year, down from $131.6 million in 2012.

"Fosun has been making determined efforts in establishing insurance as its core business," Guangchang Guo, the company's chairman, said in a statement. "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."

The two parties are expected to pool their respective management expertise, geographical reach and industry relationships and operating capabilities.

Fosun has more than one third of its total assets invested in insurance businesses, including Yong'an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance. In January, it acquired 80% of Caixa Seguros e Saúde (CSS), the insurance unit of Portugese state bank Caixa Geral de Depositos SA for EUR1 billion ($1.36 billion).

The investment in Ironshore is subject to regulatory approval.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Financials
• Expansion
• China
• Fosun Group
• Financial Services
• Growth capital