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Ironshore sell major stake to Chinese investor

Chinese investment group Fosun has bought a 20% stake in Bermuda-based insurer Ironshore for $US463.83 million ($498.84 million).

Ironshore had planned an initial public offering (IPO) to let some shareholders sell down, but this is on hold while regulators’ permission is sought for the Fosun purchase.

The IPO may not proceed, but Ironshore insiders told insuranceNEWS.com.au it has not been abandoned.

The insurer will issue shares to Fosun and use the proceeds to buy back stakes from existing shareholders, allowing some to realise their investment.

Fosun, one of China’s biggest private companies, will become Ironshore’s largest shareholder.

It wants to use its investment to expand. It has more than one-third of its assets invested in insurers such as Yong’an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance, as well as Portugal’s largest insurer, Fidelidade Group.

Ironshore was established in 2006 and is majority owned by six private equity groups.