Global insurer and reinsurer Chubb has reached an agreement to purchase an additional 15.3% stake in Huatai Insurance Group Company Limited, taking the firm’s holding in the company to 46.2%.
In March 2019, Chubb announced that it had increased its ownership in Huatai Insurance Group Company from 20% to 26.2%.
Then, last week, the China Banking and Insurance Regulatory Commission (CBIRC) approved other unrelated share purchases previously agreed to that upon closing bring Chubb’s stake to 30.9%.
The latest increase in ownership from Chubb remains subject to regulatory approvals and other important conditions, but once completed, it takes Chubb’s ownership to more than 46%.
Huatai Insurance Group Company Limited is the holding company of Huatai P&C Insurance Company, Huatai Life Insurance Company, and Huatai Asset Management Company, among other subsidiaries. The company’s insurance businesses have more than 600 branches and 11 million customers.
Chubb is set to acquire the 15.3% share from the Inner Mongolia Junzheng Energy and Chemical Group Co., Ltd. and one of its wholly owned subsidiaries. Furthermore, the parties have agreed to the intended terms of a subsequent purchase of a further 7.1% of the company, dependent on the completion of the first deal.
Evan Greenberg, Chairman and Chief Executive Officer (CEO) of Chubb, commented: “Earlier this year, following approval from the CBIRC, we increased our ownership in Huatai Insurance Group, which became the first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture. The agreement we are announcing today is another important milestone toward our goal of majority and beyond ownership in Huatai.
“We are committed to supporting Huatai as a long-term strategic shareholder and we have great confidence in the long-term potential of the Chinese insurance market. We are builders at Chubb, and our increasing stake in Huatai is an opportunity to build a great Chinese insurance company that will meet the growing protection needs of Chinese consumers and businesses.”