Will Koblensky and Lucy Hook
Two major acquisitions, revealed yesterday, are helping to fuel the consolidation trend among insurers.
Liberty Mutual Insurance, which has as an underwriting arm in Canada and employs more than 50,000 people worldwide, took a chunk out of Fosun International by buying
Ironshore Inc., a global specialty lines business.
Boston-based Liberty said in a statement that it is acquiring Ironshore for $3 billion USD. Regulatory approval for the transaction is expected in the first half of 2017.
Founded in 2006 and ranking as one of the top 10 excess & surplus lines insurers in the US, Ironshore had gross premiums written of $2.2 billion in 2015. It had around 800 employees in 15 countries at the time of purchase and is expected to keep its management team.
“The combination of Ironshore and Liberty Mutual is a win-win proposition and value creating for both companies,” said Kevin H. Kelley, Ironshore CEO. “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.”
Meanwhile, following the acquisition trend in Canada, over in the US, Hub International Limited purchased MDW Insurance Group’s assets as well as its affiliates Agents Insurance Resources and A.I.R. Insurance Marketing.
MDW provides multi-line insurance solutions.
Both CEOs of the companies under new ownership will stay on and Ironshore Inc. will continue operating under its current name.
“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,” David H. Long, Liberty Mutual Insurance chairman and CEO said.
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