Chubb increases stake in Chinese insurance company

It will own 46.2% of the company upon completion of the transaction

Chubb increases stake in Chinese insurance company

Insurance News

By Ryan Smith

Chubb Limited has announced that it has agreed to purchase an additional 15.3% of Chinese insurance company Huatai Insurance Group Company Limited. Upon completion of the transaction, Chubb is expected to own 46.2% of Huatai Insurance Group. The parties have also agreed to a subsequent purchase of an additional 7.1% of the company, contingent on the completion of the first purchase.

Huatai Insurance Group is the holding company of Huatai P&C Insurance Company, Huatai Life Insurance Company, Huatai Asset Management Company, and other subsidiaries. Huatai Group’s insurance operations have more than 600 branches and 11 million customers.

“Earlier this year, following approval from the (Chinese Banking and Insurance Regulatory Commission), 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,” said Evan C. Greenberg, chairman and CEO of Chubb.

“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.”

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