Fosun builds war chest for more insurance acquisitions

Fosun International, the Chinese investment company with substantial stakes in companies including Peak Re and Ironshore, has raised some HK$9.3 billion ($1.2 billion) from a share sale with the intention of funding more acquisitions in the insurance sector.

Hong Kong-listed Fosun placed 465 million shares with investors at a price of HK$20 each, representing a 4.53 percent discount to its last closing price. The shares represent 6.21 percent of the company’s enlarged share capital.

Fosun International announced a month ago that it would spend some $1.8 billion on buying the 80% of US insurer Ironshore it doesn’t already own.

It also bought Portugal’s largest insurer last year and is in talks to buy an Israeli insurer. This latest capital injection will likely see the company target even more re/insurers in the US and Europe.