The MD of specialist international insurer Ironshore’s local operation says its acquisition by Liberty Mutual will benefit its Australasian operations.

As reported in a Breaking News bulletin last week, Liberty is to acquire Ironshore from Chinese conglomerate Fosun International for about $US3 billion ($4.03 billion).

Ironshore Australia and New Zealand MD Katherine Simmonds told insuranceNEWS.com.au she welcomes the change of ownership.

“We are delighted to have such a high-calibre shareholder of our parent company in Liberty Mutual,” she said. “[It] offers stability and certainty to Ironshore employees.

“For brokers and clients in the local market, the value proposition of Ironshore is now even more compelling.”

Ms Simmonds says Ironshore will retain its brand and franchise. “As a team and local business, we see opportunities for growth in all our speciality lines.

“And under the umbrella of Liberty ownership, the Ironshore Australia team is looking forward to pursuing those enhanced growth prospects… in Australia, Asia and New Zealand.”

Liberty International Underwriters Asia-Pacific President and MD Mike Abdallah told insuranceNEWS.com.au he looks forward to welcoming the Ironshore team.

“The pending acquisition of Ironshore is a positive demonstration of Liberty Mutual Group’s commitment to the specialty lines market,” he said.

The transaction will be completed during the first half of next year, subject to regulatory approvals.

Ironshore, which has 800 employees in 15 countries, was acquired by Fosun last year. Fosun secured 20% in February 2015 and was given regulatory approval for the remaining 80% the following November.

AM Best has placed Ironshore’s ratings under review following the deal’s announcement.

“AM Best views this transaction positively for Ironshore’s ratings, because it will resolve any potential concerns associated with the credit profile and financial leverage position of its current parent, Fosun,” it said.

The ratings agency has also confirmed that credit ratings for Liberty and its subsidiaries remain unchanged.