Generali has signed an agreement to acquire the remaining 51% stake in Generali China Insurance Company Limited (GCI), making it the sole owner of the property and casualty insurance business in China.
The deal, valued at approximately €99 million, marks a significant step in Generali’s strategic expansion in key Asian markets.
The acquisition, a result of a public auction process initiated by CNPC Capital, is aligned with Generali’s ‘Lifetime Partner 24: Driving Growth’ strategy, aimed at consolidating its position in key Asian markets.
The transaction, subject to regulatory approvals, is expected to have an estimated impact of around -1 percentage point on the Generali Group’s Regulatory Solvency Ratio.
Upon completion, Generali will be the first foreign entity to acquire a controlling stake in a Property & Casualty insurance company from a single state-owned entity in China through a Mandatory Public Auction process.
Generali plans to leverage its newfound full ownership of GCI to expand its distribution network in China, tapping into the country’s investments towards carbon neutrality to enhance its green business insurance offerings.
The company aims to differentiate itself in the market and utilize its global, regional, and local expertise to improve GCI’s distribution strategy.
Jaime Anchústegui, CEO International at Generali, stated, “This acquisition is fully aligned with our Group strategy, which aims at strengthening our footprint in key Asian markets. Becoming the sole owner of GCI will enable us to further expand our offering, our reach, and our distribution network.”
Generali will continue its successful partnership with CNPC Capital in the Life and Asset Management segments through the joint-venture Generali China Life Insurance Company Limited, established in 2002.
This joint venture recorded over €3 billion in gross written premiums in 2022.
Rob Leonardi, Asia Regional Officer at Generali, highlighted the strategic importance of China in the global insurance market, expressing confidence that the acquisition will position Generali to capitalise on opportunities and become the preferred insurance partner for more customers across China.
UBS served as the financial advisor, and Fangda Partners acted as the legal advisor for Generali in this transaction.
