Swiss Re has confirmed that it is exploring a possible investment in China Pacific Insurance Co. (CPIC).

While the reinsurance giant said in a statement that “no definitive agreement” has yet taken place, the investment could take the form of a primary offering of new securities by CPIC.

According to a Bloomberg report, CPIC is also in “advanced” talks to invest at least $2 billion for a stake in Swiss Re – and Swiss Re would, in turn, spend between $500 million to $1 billion for a minority stake in the Chinese insurer.  

However, Swiss Re said that it “has no current intention of issuing new shares or making treasury shares available to any potential investor.”

Swiss Re is said to be looking to expand its footprint in Asia, saying that it would continue to welcome an “anchor investor” after Japan’s SoftBank Group declined to pursue a stake in May. And, in 2018, the reinsurer was said to have held discussions with Chinese authorities about an investment in Chinese insurer Anbang Insurance Group Co.