Six months after Fosun International announced its intention to purchase Meadowbrook Insurance Group Inc., it has almost become reality.
“We are in the process ourselves of working through all the necessary things to complete the transaction,” says Archie McIntyre, the senior vice president of business development at Meadowbrook Insurance Group. “So today we’re very excited about our merger with Fosun International, and very supportive of moving forward and making good progress to complete that transaction.”
That is expected to happen in the early part of the second half of the year, says McIntyre, “subject to regulatory approvals.”
Fosun International agreed to buy Meadowbrook Insurance Group Inc. for about $433 million back in December, a deal that expands the Chinese conglomerate’s core insurance business and opens the door to the U.S. property and casualty market.
The deal was subject to approval by Meadowbrook’s shareholders and regulatory review.
“One of the things that is exciting about Fosun is their ability to give us access to capital,” said McIntyre, “and how Fosun sees Meadowbrook is that it is their entrée into a strong U.S. P&C market, and we are excited to leverage our brand in the U.S.-based portfolio.”
Meadowbrook will maintain its Southfield, Mich., headquarters, and will continue to operate under the Meadowbrook brand name.
Founded two decades ago by four university graduates in Shanghai to sell medical equipment, Fosun has grown to become one of China’s largest conglomerates, with insurance, mining, and real-estate interests.
Meadowbrook Insurance Group, which got its start in 1955, focuses on three segments of the specialty insurance marketplace: insurance carrier operations, insurance services, and retail/wholesale insurance agency operations. Its insurance carrier operations include two specialty areas: programs and specialty excess and surplus lines.
“We operate six insurance carriers and are licensed on both an admitted and non-admitted basis in all 50 states,” says McIntyre.
“We market and underwrite specialty property and casualty insurance products through a broad and diverse network of independent retail, wholesale and general agents. Our specialty focus allows us to develop underwriting services and product expertise for underserved market segments that value service, specialized knowledge and other value-based considerations.”
