FOSUN’S ACQUISITION OF MEADOWBROOK APPROVED BY CALIFORNIA

The California Department of Insurance has approved the proposed $433m acquisition of Michigan-based property/casualty insurer Meadowbrook Insurance Group by China’s Fosun International, at least as far as the deal concerns Meadowbrook’s California-domiciled subsidiaries, Star Insurance, ProCentury Insurance and Williamsburg National Insurance. Closing of the deal remains subject to certain other conditions as well as regulatory approvals for the sales of Meadowbrook’s Missouri-based Savers Property and Casualty unit and Ohio-based Century Surety unit. The deal was announced at the end of last year, with Guo Guangchang, chairman of Fosun, describing the transaction as a means to establish a significant presence in the US property/casualty (p/c) market as part of Fosun’s strategy to expand its core insurance business. Meadowbrook will continue to operate under the Meadowbrook name.