Liberty Mutual Insurance has agreed to acquire specialty lines company Ironshore for an estimated $3 billion.
The acquisition of 100 percent of Ironshore from Fosun International Limited is expected to close in the first half of 2017, depending on regulatory approvals and customary closing conditions.
The purchase price will be 1.45 times the actual tangible book value of Ironshore, as of year-end 2016. It is expected to amount to around $3 billion, although this is subject to closing price adjustment.
Ironshore will continue to operate with the same brand and management team, including CEO Kevin Kelley, but as part of the Liberty Mutual organisation.
Founded in 2006, Ironshore saw gross premiums written of $2.2 billion in 2015.
David Long, chairman and CEO of Liberty Mutual Insurance, said: “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.”
Kelley said: “The combination of Ironshore and Liberty Mutual is a win-win proposition and value creating for both companies.”
He added: “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.”
