Fairfax Financial Purchases 15% of China’s Alltrust Insurance

Canada’s Fairfax Financial Holdings Limited has purchased of a 15 percent interest in Alltrust Insurance Company of China for approximately US$66 million, subject to final approval by the Chinese Insurance Regulatory Commission (CIRC).

“We are pleased to be partnering with one of the leading private insurers in China,” commented Prem Watsa, Chairman and CEO. “Alltrust has shown tremendous profitable growth over the last five years and we look forward to working with Alltrust’s esteemed Chairman, Henry Du, and his accomplished management team to further develop their business and products, much like we have done with our joint venture in India, ICICI Lombard General Insurance.”

Alltrust’s Chairman, Henry Du, said the deal concludes “a long and rigorous search” for the right partner “that shares our same core concepts of integrity and professionalism.” He especially noted that Fairfax operates “many businesses” and has a “wealth of insurance and investment experience around the world,” which will “be of great assistance to us as we look to continue to grow our profitable enterprise throughout China.”

Alltrust provides a full spectrum of primary insurance products and services in China, including property insurance, liability insurance, surety bonds, short-term health insurance, accident insurance, motor insurance and reinsurance.

The company is headquartered in Shanghai and was established in September 2004 “by a group of large Chinese power conglomerates and industrial groups, including five of China’s largest power groups that generate over 45 percent of the country’s power supply,” said Fairfax’ bulletin..

The Chinese insurer has “been profitable since its inception and has over RMB 1 billion [US $146 million] in capital. The company has a national network across China with 25 provincial branches and 150 sub-branches and over 4,000 employees.”

Source: Fairfax Financial Holdings – www.fairfax.ca

Topics China