JD.com, a Chinese e-commerce firm, has announced that it will buy a one-third stake in Allianz China General insurance for RMB537 million (US$85.4 million), furthering its push into the financial sector.
The acquisition, which has yet to receive government approval, will make JD.com the second-largest shareholder in the insurer following Germany’s Allianz Group, according to a report by the South China Morning Post.
This latest move is part of JD.com’s push into financial services. The company, which is the second-largest e-commerce player in China, recently spun off its finance arm. CEO Richard Liu Qiangdong has revealed that the firm is looking to make more ventures into the insurance and online brokerage spheres.
Allianz China General Insurance offers various products, including motor, marine, liability, property, engineering, short-term health, accident, and domestic credit insurance. It recently opened its third mainland branch in Beijing, following its Shanghai and Guangdong offices. It also has a sales service office in Shenzhen.