Swiss Re announced that it has entered into a transaction with Zurich Insurance Company Ltd to acquire a 4.9 percent stake in New China Life Insurance Company Ltd, in a move it described as reaffirming its “commitment to high growth markets.”
New China Life provides both life and health insurance products. It is headquartered in Beijing, and is the third largest life insurer in China based on gross premium.
Yesterday Zurich announced that it was offering to sell 292.5 million China Life shares. Swiss Re will acquire more than half of the total shares Zurich is selling.
Swiss Re said it is “acquiring directly from Zurich Insurance Company 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 (which includes both H shares listed in Hong Kong and A shares listed in Shanghai). The total consideration of the transaction is HKD 3,821 million (US$493 million).”
John R. Dacey, Swiss Re’s Group Chief Strategy Officer, commented: “China is the fifth largest life insurance market in the world, but its penetration is still relatively low. 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 be completed by the 25th of November 2013.
Source: Swiss Re
Topics China
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