Ageas enters Asian reinsurance market with $400m China Taiping deal

Belgium-based insurance group Ageas has agreed to acquire 25 percent stake in Taiping Reinsurance (TPRe), a subsidiary of China Taiping Insurance Holdings, for a total cash consideration of around HKD 3.1 billion ($404 million) to enter the Asian reinsurance market.

The deal will allow Ageas to expand its presence in the fast-growing Asian reinsurance market, and strengthen its relationship with China Taiping.

The transaction is subject to regulatory approval and is expected to be closed in the last quarter of 2020.

Ageas said the transaction replaces this year’s share buy-back programme that was delayed following the recommendation of the National Bank of Belgium.

Bart De Smet, chief executive of Ageas, said: “This transaction offers Ageas a unique opportunity to enter the Asian reinsurance market and to benefit from its strong potential. We are pleased to do so together with our long standing partner China Taiping as this further strengthens our very successful partnership. For Taiping Re the capital increase will allow it to achieve its wider growth plans.”

Wang Sidong, chief executive of China Taiping, added: “We have a long-term strategic partnership with Ageas. This transaction further reinforces the collaboration between Taiping and Ageas, and we believe such collaboration will create synergies and support our ambition to grow our global reinsurance business especially in the European markets.”