Liberty Mutual Insurance and Sanpower Group Co. Ltd., one of China’s leading private enterprises, announced they have agreed to create a joint venture from Liberty Mutual’s current Chinese property/casualty insurance operations.
Sanpower will hold a 51 percent controlling interest in the company and Liberty Mutual a 49 percent minority interest once the transaction is completed following approval by the appropriate regulatory authorities, including the China Insurance Regulatory Commission (CIRC).
“China has the second largest property and casualty market in the world and continues to offer attractive growth opportunities to us,” said David H. Long, Liberty Mutual Insurance chairman and chief executive officer.
“Sanpower’s understanding of, and access to, broader Chinese markets, particularly through their extensive retail network, will significantly enhance the competitiveness of our joint operations in a market that remains dominated by local players,” Long added. “I’d like to thank our China employees for putting Liberty in the position to make this partnership possible.”
Liberty Mutual has had a presence in China since 1996 when it opened a representative office in Shanghai. Today, the company said it is one of the largest foreign non-life companies in China and has operations in six provinces: Chongqing in the west, Beijing in the north, Zhejiang in the east, Guangdong in the south, Shandong in the northeast and Sichuan in the southwest.
Yuan Yafei, chairman of Sanpower Group, said, “Liberty Mutual Insurance Group is one of the world’s most reputable insurance companies, and its strategic partnership with Sanpower Group will not only promote the company’s development in China, but also expand Sanpower’s position in the financial sector and accelerate the development of its financial services. Therefore, the partnership is a win-win for both sides, so to speak.”
Sanpower Group Co. Ltd., which is a Chinese private conglomerate with businesses in the financial, health, and retail industries, had total assets of over 65 billion renminbi ($9.8 billion) in 2015. The company has controlling stakes in more than 100 subsidiaries, including a number of listed companies in China as well as the House of Fraser (UK), Brookstone (US), and Natali (Israel).
Source: Liberty Mutual Insurance
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