Generali goes big in China with $108m stake in P&C insurance business
Italian insurer Generali has acquired the remaining 51% stake in Generali China Insurance Company for approximately €99 million ($108 million), as part of its long-term strategy aimed at increasing share in the burgeoning Chinese market and bolstering presence in Asia.
Generali is now the 100% shareholder of its Chinese P&C insurance business. The deal follows the public auction process initiated by Chinese carrier CNPC Capital.
Generali said the acquisition will allow it to develop a fully-owned and controlled general insurance business in China, and further expand its offering, reach, and distribution network in the growing Chinese market.
Upon completion, Generali will become the first foreign player to acquire a controlling stake of a property & casualty insurance company from a single state-owned entity in China purely via a Mandatory Public Auction process.
As sole owner of GCI, Generali said it will seek to expand its distribution network in China; build on China’s investments towards carbon neutrality to expand green business insurance in order to differentiate Generali in the market; and leverage the Group’s global, regional and local know-how to improve GCI’s distribution strategy.
Generali and CNPC Capital remain joint-venture partners in Generali China Life Insurance Company, created in 2002, which recorded in excess of €3 billion of gross written premiums in 2022, as well as in Generali China Asset Management Company.
The group expects the estimated impact on its regulatory solvency ratio to be around -1 p.p.
Jaime Anchústegui, CEO international at Generali, said: “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. I would like to thank CNPC Capital for its contribution and close collaboration in developing GCI together with Generali until now and in the future. Our constructive long-term and forward-looking partnership will continue successfully in the Life insurance joint-venture Generali China Life, covering Life, Health and Asset Management.”
Rob Leonardi, Asia regional officer at Generali, said: “China is the world’s second largest general insurance market by premiums, with an attractive growth profile. This transaction, which sees Generali obtain full ownership of GCI, will build on the high-quality business that has been developed with CNPC Capital. We are confident that together with the management team and employees we can benefit from the various opportunities in this market and become the Lifetime Partner to even more customers across China.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
