Liberty Mutual acquires Ironshore

Liberty Mutual Insurance has acquired Ironshore Inc., forming a global specialty business with almost $6.5 billion in net written premiums. Liberty said at the end of 2016 its intention to buy 100% of Ironshore for $3 billion, or 1.45x Ironshore’s book value at the end of 2016. Liberty Mutual confirmed it is merging the Liberty International Underwriters U.S. business with Ironshore’s U.S. specialty lines business under the Ironshore brand. This will create the sixth largest writer of excess and surplus lines in the U.S. based on 2016 direct written premium. David H. Long, Liberty Mutual Insurance chairman and CEO said, “The combination of our two operations will create a top tier U.S. specialty insurer with a broad and deep set of solutions for clients and brokers. For Liberty’s worldwide operations, Ironshore becomes an ideal complement to our $5 billion global specialty business by providing additional scale, expertise, innovation and market relationships.” Kevin H. Kelley, present Ironshore chief executive officer, will stay to lead all Ironshore operations reporting to Long. Ironshore’s other businesses, including its Lloyd’s syndicate operation and Bermuda platform, will continue to run with their present business strategy, management team and Ironshore brand.