Fosun to become largest shareholder in Ironshore

Fosun International, a Chinese investment company listed on the Hong Kong Stock Exchange, has acquired a 20 percent stake in specialty insurer Ironshore.

The funds from the deal will partly be used to allow private equity and other investors in the business to exit. Once the deal is complete and Ironshore has used the proceeds to fund repurchases of shares from existing shareholders, Fosun will become the largest shareholder of Ironshore.

Fosun is a big investor in the insurance sector with around one third of its total assets invested in this industry. Its other investments include Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance and Fidelidade Group, Portugal’s largest insurance company.

Fosun said it regards the development of its insurance business as “a premium path in connecting its investment capability to long-term high-quality capital”.

Guo Guangchang, chairman of Fosun, said: “Fosun has been making determined efforts in establishing insurance as its 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.”

Kevin Kelley, chief executive of Ironshore, said: “We are excited about our new partnership with Fosun as a core long-term strategic investor in Ironshore.  Fosun brings a global perspective with valuable Asian market connections combined with a very strong investment management track record.  This partnership further enhances Ironshore’s unique position to grow profitably in the global insurance market.”