Fosun may face rough weather over Ironshore deal
US authorities are probing Chinese conglomerate’s takeover of the specialty insurer.
The Chinese mainland's largest private conglomerate Fosun Group said on Saturday that it was assisting US government authorities with a review of its acquisition of Ironshore, a provider of casualty and specialty insurance.
“Fosun and Ironshore voluntarily notified the Committee on Foreign Investment in the United States about their deal. Both sides are working closely with the CFIUS and providing them with all the relevant information,” Fosun said in a statement published on its website on Saturday.
CFIUS is an inter-agency committee of the US government that reviews the national security implications of foreign investments in US companies or operations and includes representatives from 16 US departments and agencies.
Media group Caixin said on Saturday that Ironshore, which was acquired by Fosun last year, is under investigation by the US government because of a liability insurance product offered to US government officers.
The Caixin.com report quoted a source close to Fosun as saying that the liability insurance business accounts for less than 2 per cent of Ironshore’s total premiums and though not forbidden by law, may be abandoned since it has raised the ire of US regulators.
The liability product aims to protect public officials against breaches of duty, neglect, error, misstatement or omission during the performance of their duties, Ironshore said.