Bermuda-based insurer Ironshore has closed a deal that will make Chinese investment firm Fosun International Ltd the firm’s biggest shareholder.

Hong Kong-listed Fosun completed its purchase of 20 per cent of Ironshore’s outstanding shares, the companies announced last night.

Ironshore said it will use all of the proceeds from the share issuance to fund repurchases of outstanding equity from existing equity holders, including existing long-term, private equity shareholders.

The impact of these transactions is that Fosun will become the largest shareholder of Ironshore.

“Ironshore is pleased to announce the completion of the equity transaction with Fosun, which has an established investment management approach grounded in the Asian market,” said Ironshore chief executive officer Kevin Kelley.

“Our relationship with Fosun will further strengthen Ironshore’s ability to realise strategic growth opportunities throughout our global insurance platform.”

Fosun Chairman Guo Guangchang said his firm had established a comprehensive insurance platform covering property & casualty insurance, life insurance, reinsurance and speciality insurance.

“Ironshore’s excellent team has outstanding managing and underwriting insurance capabilities, which are widely recognised in the insurance industry.

“Ironshore has capability to provide its clients with comprehensive and quality speciality insurance products. As a long-term strategic investor, Fosun will support the stable and long-term development of Ironshore.”

Fosun said it regarded “the development of the insurance business as a premium path in connecting its investment capability to long-term high-quality capital”.