Fosun acquires 20% of US insurer to extend portfolio

Shanghai-based conglomerate Fosun Group yesterday completed acquisition of 20 percent of US insurer Ironshore as part of its efforts to secure long-term and high-quality capital.

The acquisition followed an August agreement that Fosun would invest US$464 million in Ironshore for 20 percent of the insurer's total outstanding ordinary shares.

Ironshore will use the proceeds from a share issuance to fund repurchases of outstanding equity from existing stake holders, including current long-term, private equity shareholders, and eventually make Fosun the largest shareholder, the two companies disclosed in a joint statement.

Guo Guangchang, chairman of Fosun, said the investment in Ironshore helped the group build a platform covering property and casualty insurance, life insurance, reinsurance and specialty insurance.

Fosun said it has always been actively expanding in the insurance industry to secure access to long term and high quality capital.

Currently, Fosun has more than one third of its total assets invested in insurance companies, including in Yong'an P&C Insurance, Pramerica Fosun Life Insurance, Hong Kong-based Peak Reinsurance and Fidelidade Group, Portugal's largest insurance company.