The Chinese multinational company, Forsun International Ltd, has taken steps to move into the US Property and Casualty (P&C) insurance market. The news about it acquiring the Meadowbrook Insurance Group for $433 confirmed by the Chairman, Guo Guangchang, and was featured news in China Daily.
He also confirmed that the deal was a huge achievement for the largest multinational company, and this would support its wide-ranging insurance-based financial capabilities. Guo also said that the new deal is a confirmation of the company’s efforts to extend its insurance business.
Meadowbrook is a company with several strong and talented employees, offering high quality insurance products and has a robust network for distribution of these products. This ensures that the company meets the evolving demands of policyholders at the company – Guo confirmed this in a statement he made to the press.
Moreover, Robert S. Cubbin, the CEO and President of Meadowbrook reportedly said that the company’s partnership with Forsun adds more strength to its capital base. In addition, the pact will enable the US-based firm insurance company to improve its services and increase profits.
There is a possibility that Tripp Levy, the New York-based law firm might confront the coalition between Meadowbrook and Forsun, and this comes based on a column published in a press release on Wednesday. The spokes person for Tripp Levy issued a statement saying that there is a possible breach of fiduciary duties and some other violations of the state law in this union. There may be an investigation into whether there was a proper auction process and whether Forsun is actually underpaying for the Meadowbrook shares it bought.
When asked for a comment on this, the Meadowbrook’s spokesperson declined. The only confirmed news on availability of the Meadowbrook Company’s life insurance schemes is that it will maintain its headquarters in the US. The transaction will be over in mid of 2015. The Meadowbrook Company started in Southfield (Michigan) in 1955, and has since been the leading company in the life insurance market.
Forsun began in 1992, as a China-based insurance company with investments in pharmaceuticals, asset management and industrial operations. It maintained its headquarters in Shanghai, and has more than 350,000 employees all over the world. It has more than a third of its investments in the insurance market and an estimated $50 billion worth of assets.
The collaboration between Forsun and Meadowbrook will bring more life insurance prospects and upgrades in policies through 2015.
