Fosun sells insurance subsidiary Ironshore to Liberty Mutual for US$3 billion
Chinese conglomerate Fosun International has agreed to sell its insurance subsidiary Ironshore for US$3 billion in cash to United States-based insurer Liberty Mutual Group.
In a filing to the Hong Kong stock exchange late on Monday, Fosun chairman Guo Guangchang said the company will divest 100 per cent of its shares in Ironshore, a deal in which Fosun is estimated to receive an unaudited after-tax gain of US$310 million.
“[Fosun] believes the disposal confirms the unique specialty insurance franchise and capabilities of Ironshore management team,” Guo said.
He added that the transaction "does not change the commitment of the group to its remaning insurance and investment businesses".
The filing described Ironshore as a provider of “broker-sourced specialty commercial property and casualty coverages for varying risks on a global basis”.
Liberty Mutual is a diversified insurer with operations in 29 countries and territories, employs more than 50,000 people in over 800 offices around the world, and offers a wide range of insurance products and services.
The proposed acquisition followed Ironshore’s announcement in July of a potential initial public offering.
Fosun said it intends to use the proceeds from the Ironshore disposal for repayment of existing loans and general corporate fund purposes, including new investments.