The Chinese owner of Ironshore has agreed to sell the Bermudian-based insurer to US giant Liberty Mutual in a $3 billion deal.

The US company, which struck the deal with Shanghai-based Fosun International, said it planned to let Ironshore “operate with the same management team and brand, but as part of the larger Liberty Mutual organisation, which has a focus on growing its specialty lines operations”.

And Mitch Blaser, CEO of the Bermuda arm of Ironshore, said the move could mean an expansion and more jobs for the island operation.

Mr Blaser said: “If anything, from a business perspective, we would expect to see the opportunity to expand, taking advantage of the Liberty Mutual resources, global client base and infrastructure.”

He added: “Liberty Mutual does not have a Bermuda operation, so Ironshore will become the Liberty Mutual and Ironshore Bermuda operation.”

Mr Blaser said the nuts and bolts of the deal had still to be negotiated, so any changes could not be expected in the short term.

But he added: “Our goal is to grow our Bermuda business — that’s a joint goal for Ironshore and Liberty Mutual.”

Mr Blaser said: “We see this as a big positive for our global business and we also believe it’s a very big positive for Bermuda.”

He added: “When you are a Bermuda company, you are very restricted in being able to do business in other jurisdictions. When you are a US company, you have freedom to do business in the United States because you are paying taxes in the United States.”

David Long, Liberty Mutual chairman and chief executive officer, said: “We are pleased to have Ironshore and its proven management team led by CEO Kevin Kelley join Liberty Mutual.

“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.”

Kevin Kelley, Ironshore CEO, added: “The combination of Ironshore and Liberty Mutual is a win-win proposition and value creating for both companies.

“Ironshore will become part of a another A-rated company with a global reach, a strong balance sheet, wide client base and a much greater capacity to drive profitable growth.”

And he said the deal was “beneficial for all three parties involved and is the culmination of a careful and considered process”.

Mr Kelley added: “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.”

Ironshore, founded in 2006, had gross premiums written in 2015 of $2.2 billion and is one of the top ten excess and surplus lines insurers in the US.

The company has around 800 employees spread across 15 countries worldwide and is organised into three operating hubs in Bermuda, the US and London.

Liberty, like Ironshore, has an A rating from agency AM Best, and more than $120 billion in assets.

Ironshore was taken over by Fosun, which already had a 20 per cent stake, a little more than two years ago.

The Liberty Mutual deal is expected to close in the first half of next year, subject to approvals by regulators and other conditions.