Fosun co-founder steps down amid sudden reshuffling

Group is one of the most active Chinese firms in the M&A arena, with several investments in the insurance industry

Fosun co-founder steps down amid sudden reshuffling

Insurance News

By Gabriel Olano

Fosun International Ltd , one of the most aggressively acquisitive conglomerates in China, has announced the resignation of its co-founder and CEO as part of a broad reshuffling of the company’s posts.
In a statement to the Hong Kong stock exchange, Fosun announced that Liang Xinjun will be resigning due to health matters, but it did not elaborate further. Senior vice-president Ding Guoqi also left his post.
Liang founded Fosun in 1992 alongside its chairman Guo Guangchang and several others. The group patterned its investment strategy after American business magnate Warren Buffett, with insurance cash being used to fuel higher-return investments.

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The group has a wide array of investments, including One Chase Manhattan Plaza, the headquarters of JPMorgan, which it bought in 2013. It also bought specialty insurer Ironshore, but sold it to Liberty Mutual in December 2016. Recently, Fosun invested US$16.4 million in The Floow Ltd., a telematics firm in the UK.

Alongside the announcement of the departures, the company also announced its earnings, with net profits having risen 28% to a record high of over RMB10 billion (US$1.45 billion). Guo said that the group will work towards limiting funding costs while investing in new technologies, such as automation and artificial intelligence.

Related stories:
Major Chinese conglomerate invests in British telematics firm
Japanese and Chinese insurers emerge as major players in M&A arena
Liberty Mutual swoops for Fosun’s Ironshore in $3 billion deal

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