Chubb Ltd. announced it has received Chinese regulatory approval to increase the company’s ownership in Huatai Insurance Group Co. Ltd. to 26.2 percent from 20 percent, effective Feb. 27, 2019.
Financial terms of the deal were not released.
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, among other subsidiaries. Huatai Group’s insurance operations have more than 600 branches and 11 million customers.
With the increased Chubb stake, Huatai Group becomes the first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture, said Chubb in a statement.
“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,” said Evan G. Greenberg, chairman and chief executive officer of Chubb.
“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,” he added.
Chubb’s history in China dates back to 1792 when a legacy company – the Insurance Company of North America (INA) – began providing protection to the pioneers of trade between the United States and China. In 1897, INA appointed an agent in Shanghai and started to officially conduct business in China. Chubb said it now views China as one of its greatest long-term opportunities.
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