Chinese insurance giant Fosun Group is being investigated by U.S. authorities over its acquisition of specialty insurer
Ironshore, according to a new report.
The
South China Morning Post reported that Fosun, the Chinese mainland’s largest private conglomerate, is being investigated by the Committee on Foreign Investment in the United States (CFIUS).
“Fosun and Ironshore voluntarily notified the Committee on Foreign Investment in the United States about their deal,” Fosun said in a statement. “Both sides are working closely with the CFIUS and providing them with all the relevant information.”
According to the
South China Morning Post report, the CFIUS, which reviews the national security implications of foreign investments in U.S. companies, is looking into the Fosun-Ironshore deal because of a liability insurance product offered to U.S. government officers. The product protects public officials against things like breaches of duty, neglect or error during the performance of their duties.
The product accounts for less than 2% of Ironshore’s total premiums. Although it’s not forbidden by law, the company may drop the product to avoid more trouble from regulators.
Fosun announced its acquisition of Ironshore in November.
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