Insurer Chubb ups stake in Huatai creating ‘first Sino-foreign equity joint venture’
US insurer Chubb has increased its stake in the Chinese Huatai Insurance Group creating the “first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture”, the company said.
Chubb received approval to up its ownership in the Chinese insurer to 26.2 percent from 20 percent from the China Banking and Insurance Regulatory Commission effective from February 27, 2019.
Huatai Insurance Group is the holding company of Huatai P&C Insurance Company, Huatai Life Insurance Company, Huatai Asset Management Company, Huatai Baoxing Fund Management Company, alongside other subsidiaries. Its insurance operations have more than 600 branches and 11 million customers.
Evan Greenberg, chairman and chief executive officer of Chubb, said: "We made our first investment in Huatai in 2002 and became the company's largest shareholder. This increased ownership is an important milestone towards our goal of majority and beyond ownership.
"Chubb's continuous investment in China over the past 17 years, including our wholly owned Chubb China subsidiary, demonstrates our long-term commitment to the development of a strong Chinese financial services industry and the important role it plays in serving Chinese society and the welfare of its people."
Chubb has a long business history with China, dating back to 1792 when a legacy company – the Insurance Company of North America – provided protection for trade between the United States and China.
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