Fosun raises funds for insurance push
Chinese conglomerate Fosun International has announced plans to raise $1.5 billion through a rights offer in order to expand its operations in insurance and banking. The company, backed by Chinese billionaire Guo Guangchang filed papers with the Hong Kong stock exchange Thursday which states that it intends to use the funds for “general corporate purposes including mergers and acquisitions in the banking and insurance industry and repayment of loans.” Bloomberg reports that the firm has made insurance industry deals worth $1.84 billion this year including an agreement to buy Ironshore of Bermuda and Meadowbrook of Michigan. It also has insurance interests in China.
Lloyds announces $1.87 billion profit
Lloyd’s specialist insurance market has announced pre-tax profit of $1.87 billion for the first half of 2015. The combined ratio of 89.5 per cent shows Lloyd’s outperforming its competitors for the fourth consecutive year and reflects the results of the market’s 96 syndicates. The results show that the group has net resource of $35.86 billion.
Easing of capital growth in reinsurance says Willis
Willis Re says that the growth in global capital dedicated to reinsurance has stabilized in the first half of 2015 according to its Reinsurance Index. Dedicated global reinsurance capital from both traditional and non-traditional sources remains at $425 billion, unchanged from the record level reached at year-end 2014. This is due to fewer acceptable investment opportunities and an increase in reinsurers returning earnings to shareholders, along with merger and acquisitions activity.
US brokerage network reaches $100 million milestone
Heffernan Insurance Brokers, one of the largest independent insurance brokerage firms in the United States has announced that is has surpassed the $100 million revenue milestone, a significant financial achievement for the company. The California-based company has a niche practice business, especially non-profits, technology, health care, hospitality, construction, and real estate. It has ten offices and approximately 425 staff across the US.