Chubb Limited has agreed to purchase an additional 15.3 percent of Huatai Insurance Group Company Limited.
Chubb said in a statement that, upon completion of the share purchases, it expects to own 46.2 percent of Huatai.
The China Banking and Insurance Regulatory Commission ("CBIRC") recently approved other unrelated share purchases previously agreed to that after closing will bring Chubb's stake to 30.9 percent.
Huatai is the holding company of Huatai P&C Insurance Company, Huatai Life Insurance Company, and Huatai Asset Management Company, among other subsidiaries. Huatai's insurance operations have more than 600 branches and 11 million customers.
Chubb will purchase the shares from the Inner Mongolia Junzheng Energy and Chemical Group Co., Ltd., and one of its wholly owned subsidiaries. The parties also agreed to the intended terms of a subsequent purchase of an additional 7.1 percent of the company, contingent upon the completion of the first purchase. The transactions are subject to regulatory approvals and other important conditions.
"Earlier this year, following approval from the CBIRC, we increased our ownership in Huatai Insurance Group, which became the first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture. The agreement we are announcing today is another important milestone toward our goal of majority and beyond ownership in Huatai," said Evan G. Greenberg, Chubb's chair and chief executive officer. "We are committed to supporting Huatai as a long-term strategic shareholder and we have great confidence in the long-term potential of the Chinese insurance market. We are builders at Chubb, and our increasing stake in Huatai is an opportunity to build a great Chinese insurance company that will meet the growing protection needs of Chinese consumers and businesses."
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.
Learn more: www.chubb.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].