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Fosun seeks strategic investors for Peak Re

  • Publish Date: Posted about 7 years ago

Fosun International, the large Chinese insurer, is looking for investors for a minority stake in its reinsurance business ahead of a possible initial public offering.

It is understood that the sale of shares in Peak Reinsurance could raise about $300 million. The investment would come ahead of a potential IPO of the reinsurer in Hong Kong.

Fosun, which owns 87% of Peak Re, is going ahead with asset disposals as it attempts to improve its credit profile from its current junk ratings. The Shanghai-based company agreed to sell insurer Ironshore late last year for about $3 billion.

Peak Re’s profit fell by 88% to $6.9 million in 2016, according to financial statements from Fosun last week. The World Bank’s private investment arm, International Finance Corp, owns the remaining 13% of Peak Re.