Chinese investment company Fosun International Ltd is to buy a 20 percent stake in Bermuda insurer Ironshore.

Privately held Ironshore, which in June filed for a $100 million initial public offering, said Fosun’s investment brought with it valuable connections in the Asian market.

“Ironshore will use all of the proceeds from the share issuance to fund repurchases of outstanding ordinary shares from existing shareholders, including existing long-term private equity shareholders,” Ironshore stated.

“After giving effect to Fosun’s equity purchase and Ironshore’s use of proceeds, Fosun will be the largest shareholder of Ironshore.”

Ironshore chief executive officer Kevin Kelley said: “We are excited about our new partnership with Fosun as a core long-term strategic investor in Ironshore. Fosun brings a global perspective with valuable Asian market connections combined with a very strong investment management track record.

“This partnership further enhances Ironshore’s unique position to grow profitably in the global insurance market.”

Shanghai-based Fosun has more than one third of its total assets invested in insurance business including investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance and Peak Reinsurance and in Fidelidade Group, Portugal’s largest insurance company.

Backed by Chinese billionaire Guo Guangchang, Hong Kong-listed Fosun is on an acquisition spree that’s ranged from Australian energy companies to New York city office buildings. The group considers insurance is a key line of business.

And it does not intend to stop there. Yesterday, Bloomberg News reported that Fosun was in talks to acquire Aurora National Life Assurance Co, a US life insurance arm of Swiss Re Ltd, citing sources with knowledge of the matter.

Fosun is seeking to buy Aurora for between $400 million and $500 million, said the sources. One of the sources said that Bermuda-based Wilton Re Holdings Ltd had also expressed interest in Aurora.

Mr Guangchang, who is chairman of Fosun, said: “Fosun has been making determined efforts in establishing insurance as its core business. Our strategic investment in Ironshore represents another milestone for Fosun and will enable Fosun to further expand its insurance business and strengthen its comprehensive financial capabilities.”