Investment group Fosun has finalised the purchase of a 20% stake in Bermuda-based insurer Ironshore for $US463.83 million ($597.48 million).

Fosun, one of China’s biggest private companies, will become the largest shareholder in Ironshore, which will use proceeds from the issue to buy back equity.

Ironshore CEO Kevin Kelley says the deal allows his company to strengthen growth in its global insurance platform.

In China, Fosun has established a comprehensive insurance platform covering property and casualty (P&C), life, reinsurance and specialty insurance.

Chairman Guo Guangchang says it has enhanced its insurance business capabilities on the liability and investment side.

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

The Hong Kong-listed group has more than one-third of its assets invested in insurance, including businesses such as Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance and Fidelidade Group – Portugal’s largest insurance company. It is also set to acquire the US-based Meadowbrook Insurance Group.

Ironshore provides broker-sourced specialty commercial P&C cover, and is active in the Australian market.