AM Best has placed Ironshore’s ratings under review, with negative implications, following the takeover of the Bermuda-based insurer by Chinese conglomerate Fosun.

The ratings agency has taken the action on Ironshore’s financial strength rating of A (excellent) and its issuer credit rating of “a”.

Fosun announced in August last year it would buy 20% of Ironshore, and in May it moved to acquire the remaining stake.

AM Best says Ironshore maintains solid standalone ratings attributes and the takeover will give the insurer greater access to long-term capital and wider distribution.

The review reflects concerns about Fosun’s credit profile and debt, “which could potentially place a strain on Ironshore’s standalone capitalisation under certain stress scenarios”.

Fosun owns 300 companies in sectors such as insurance, property, healthcare and steel.