Liberty Mutual acquires Ironshore Inc from Fosun for US$3 bln
Source: Asia Insurance Review | Jan 2017
Liberty Mutual Insurance has signed a definitive agreement to acquire global specialty lines insurer Ironshore Inc from Chinese conglomerate Fosun International Limited. The transaction is expected to close in the first half of 2017 following regulatory approvals and customary closing conditions.
The purchase price is estimated to be US$3 billion (subject to closing price adjustments), and is equivalent to 1.45x Ironshore’s actual tangible book value as of end 2016. Once the transaction is closed, Ironshore is expected to continue to operate with the same management team and brand, but as part of the larger Liberty Mutual organisation, which has a focus on growing its specialty lines operations, said the latter in a statement.
Ironshore, which was founded in 2006, had gross premiums written of $2.2 billion in 2015 and is one of the 10 largest Excess & Surplus lines insurers in the US. It has about 800 employees located in 15 countries worldwide, with operating hubs in the US, Bermuda and London.