Ironshore is a leading Excess & Surplus lines insurer with strong ties in Massachusetts….
Boston’s Liberty Mutual Insurance has announced that it has entered into a definitive agreement to acquire Ironshore, Inc. from Fosun International in an estimated $3 billion dollar deal. The transaction, expected to be completed in early 2017, will see the Boston mutual insurance company acquire 100 percent ownership in one of the leading global specialty lines insurers. According to the terms of the transaction, the purchase price of approximately $3 billion equates to 1.45 times Ironshore’s actual tangible book value as of December 2016.
“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 Chairman and CEO. “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.”
Upon completion of the transaction, Ironshore will come under the helm of Liberty Mutual but will continue to operate with the same management team and brand name. In commenting on the announcement, Ironshore’s CEO Kevin H. Kelley said,
Today’s announcement of the transaction is beneficial for all three parties involved and is the culmination of a careful and considered process. We have aimed for the best possible outcome for our employees, clients and business partners and are confident this transaction achieves these goals and more.
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. In Ironshore, Liberty will gain access to a profitable specialty insurer that will enhance Liberty’s current specialty markets profile. The transaction also speaks to the value of the Ironshore franchise and to Liberty’s view of the value that the management team brings to their organization.”
“For our producers and clients, our value proposition becomes even more compelling. Liberty, like Ironshore, has a strong A.M. Best rating of ‘A.’ With more than $120 billion of assets, Liberty Mutual is a global Fortune 100 company with an A rating from A.M. Best, S&P and Moody’s that gives us access to a larger balance sheet, additional product lines and greater reinsurance and underwriting capacity.”
More about Ironshore and its ties to Boston…
Founded in 2006, Ironshore is one of the ten largest Excess & Surplus lines insurers in the United States. According to Ironshore, China’s Fosun International Limited and its subsidiaries acquired an initial 20% ownership interest in Ironshore in February of 2015. In November, of that same year, Shanghai-based Fosun acquired the remaining 80% ownership in the insurer.
Operating out of three major hubs in the United States, Bermuda and London, Ironshore has additional operations in a total of 15 countries with a total of approximately 800 employees. As of 2015, the company could boast of some $2.2 billion in gross premiums written.
In addition, Agency Checklists thought it might be interesting to note, that while Ironshore is a global company, it had strong Boston ties. Ironshore’s CEO Kevin Kelley is a life-long New Englander, having obtained his Bachelor of Science degree in Business Administration from Boston University.
He joined Ironshore in 2008 from AIG’s Lexington Insurance Company, where he was credited with helping to build Lexington into a leading excess and surplus lines insurer. During his eight-year tenure with Ironshore, Mr. Kelley has focused on expanding Ironshore’s international presence as well as diversifying its specialty insurance coverages via its global platform.