Liberty Mutual Insurance has signed an agreement to acquire Ironshore Inc., a global specialty lines company, from Fosun International Limited.
Liberty Mutual said in a statement that the transaction is expected to close in the first half of 2017 pending regulatory approvals and customary closing conditions.
Upon closing, Liberty Mutual will acquire a 100 percent ownership interest in Ironshore.
Liberty Mutual said that the purchase price will equate to 1.45x Ironshore's actual tangible book value as of year-end 2016, and is estimated to be approximately $3 billion. The purchase price is subject to closing price adjustments.
The company said that, once the transaction is closed, Ironshore will continue to operate with the same management team and brand, but as part of the larger Liberty Mutual organization, which has a focus on growing its specialty lines operations.
“We are pleased to have Ironshore and its proven management team led by CEO Kevin H. Kelley join Liberty Mutual,” said David H. Long, Liberty Mutual Insurance's chairman and chief executive officer. “Ironshore has a track record of profitably underwriting global and diverse specialty risks insurance and is an ideal complement to Liberty Mutual, providing additional scale, expertise, innovation, and market relationships to our $5 billion global specialty business.”
Ironshore, which was founded in 2006, had gross premiums written of $2.2 billion in 2015 and is one of the 10 largest excess and surplus lines insurers in the U.S. The company, which has approximately 800 employees located in 15 countries worldwide, is organized into three operating hubs based in the United States, Bermuda, and London.
“The combination of Ironshore and Liberty Mutual is a win-win proposition and value creating for both companies,” said Mr. Kelley. “Ironshore will become part of another 'A' rated company with a global reach, a strong balance sheet, wide client base, and a much greater capacity to drive profitable growth.”
Learn more: www.libertymutualinsurance.com; www.ironshore.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].