Ironshore: Everything you need to know
Founded: 2006
Gross written premium (combined operation with Liberty Mutual): $16 billion
Global offices: 30+
*As of March 03, 2019
Ironshore, a Liberty Mutual Company, provides broker-sourced specialty property and casualty insurance coverages for varying risks. Ironshore is prepared to meet clients’ complex needs promptly, with local service and in-depth underwriting experience across a broad spectrum of industries.
Following Ironshore’s acquisition by Liberty Mutual in 2017 and integration as a key part of the newly formed Global Risk Solutions, Liberty Mutual enables us to bring even greater scale, expertise, innovation, and product offerings to market. As a combined operation with approximately $16 billion in gross written premium, brokers now have access to a top-tier insurer with greater capacity and product lines for a wide range of risks.
Boston-based LMHC, the parent corporation of the Liberty Mutual Insurance group of entities, is a diversified global insurer and third largest property and casualty insurer in the U.S. based on 2018 direct written premium. The Company also ranks 75th on the Fortune 100 list of largest corporations in the U.S. based on 2018 revenue. As of December 31, 2019, LMHC had $133.644 billion in consolidated assets and "A" ratings from both A.M. Best and Standard & Poor's.
A major acquisition
In 2017, Ironshore was acquired by Liberty Mutual from China’s Fosun International Limited, a $2.6 billion deal that was first announced in December 2017 – only a year after Fosun International completed its own acquisition of the rapidly expanding insurer. Liberty Mutual then combined its existing Liberty International Underwriters business with Ironshore’s US speciality lines business, with the merged firm operating under the Ironshore brand.
At the time, David H. Long, chairman and CEO of Liberty Mutual Insurance, outlined the benefits of the merger, stating that the new firm will create the sixth largest writer of excess and surplus lines in the US based on 2016 direct written premium, among other benefits.
“The combination of our two operations will create a top tier US specialty insurer with a broad and deep set of solutions for clients and brokers,” he said. “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.”
Ironshore formed a key part of the new Global Risk Solutions business unit, which later on centralized its mergers and acquisitions insurance expertise into the Global Transaction Solutions Group (GTS). The division operates as an international, stand-alone business unit, and provides brokers and clients with centralized M&A expertise across a global platform.
Stormy beginnings
Ironshore was launched during less than ideal market conditions, when it was founded in the midst of the subprime meltdown as well as the catastrophic losses stemming from Hurricanes Katrina, Wilma and Rita. Two industry leaders, Bob and John Clements, came together in 2006 with the belief that, “The right leadership leads to the best partnerships.” With that in mind, they assembled a team filled to the brim with years of expertise in specialty areas of insurance. The company also strives to provide its clients ready access to senior level decision-makers, who have the ability to affect the long-term vitality as well as the well-being of each business with which they work.
Expanding its specialties
Ironshore continues to grow its business, with a series of details around expansions and new services announced in 2018 and early 2019. In July 2018, Ironshore announced the creation of an energy equipment facility, Syndicated Risk Services (SRS), which offers property and inland marine insurance coverage for onshore middle market classes of business in the US. A release said that SRS will underwrite the middle market sector risk on behalf of four Lloyd’s of London subscribing partners.
On the environmental side, Ironshore has made it easier for brokers to quote and bind storage tank policies, following the launch of a new online portal for insurance brokers. Alongside this launch, Ironshore enhanced its storage tank policy’s third-party bodily injury and property damage coverages to cover against certain risks, like National Resource Damages and Medical Monitoring.
“Ironshore Environmental is recognized as a market leader for hard to place environmental risks and now the Storage Tank Policy broadens our ability to expand coverage throughout this specialty sector,” said Ironshore Environmental president Toby Smith. “With this product offering and our online portal, businesses with storage tank exposures can quickly and easily secure reliable coverage through one carrier, backed by Liberty Mutual and Ironshore expertise and financial security.”
