21 November 2013 Insurance

Swiss Re to acquire stake in New China Life

Swiss Re has entered into a transaction with Zurich Insurance Company to acquire a 4.9 percent stake in New China Life Insurance Company.

New China Life is a Chinese company which provides life and health insurance products. Headquartered in Beijing, New China Life is the third largest life insurer in China based on gross premium.

Swiss Re is acquiring 152.9 million New China Life H shares, which are listed on the Stock Exchange of Hong Kong, representing 4.9 percent of the total issued share capital of New China Life, directly from Zurich Insurance Company.

The total consideration of the transaction is HKD 3,821 million ($493 million).

"China is the fifth largest life insurance market in the world, but its penetration is still relatively low,” said John Dacey, Swiss Re's group chief strategy officer. “Investing in New China Life enables us to tap into this growth potential. It also reaffirms Swiss Re's commitment to the high growth markets and its strategy of making investments in leading insurance franchises."

The transaction is expected to complete on November 25 2013.

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