Italian insurance company My general The company has acquired the remaining 51% stake in Generali China Insurance for approximately €99 million (US$108 million), as part of its long-term strategy aimed at increasing its share of the booming Chinese market and strengthening its presence in Asia.
Generali is now the 100% shareholder of the property and casualty insurance business in China. The deal follows a public auction process initiated by Chinese carrier CNPC Capital.
Generali said the acquisition will allow it to develop its wholly owned and controlled general insurance business in China, and further expand its offering network, reach and distribution in the growing Chinese market.
Upon completion, Generali will become the first foreign player to acquire a controlling stake in a property and casualty insurer from a single state-owned entity in China solely through a mandatory public auction process.
As the sole owner of GCI, Generali said it will seek to expand its distribution network in China; Building on China’s investments towards carbon neutrality to expand green business insurance to differentiate Generali in the market; Leveraging the Group’s global, regional and local knowledge to improve GCI’s distribution strategy.
Generali and CNBC Capital remain joint venture partners in Generali China Life Insurance, created in 2002, which recorded more than €3 billion in gross written premiums in 2022, as well as in Generali China Life Insurance Assets.
The group expects the estimated impact on its regulatory solvency ratio to be approximately -1 percentage point
Jaime Anchostegui, International CEO of Generali, said: “This acquisition is fully in line with our group’s strategy, which aims to strengthen our footprint in key Asian markets. Being the sole owner of GCI will enable us to expand our offerings, reach and distribution network. I would like to thank GCI CNPC Capital for its contribution and close cooperation in the development of GCI with Generali to date and in the future.Our long-term and forward-looking constructive partnership will continue successfully in the life insurance joint venture, Generali China Life, covering life, health and asset management.
Rob Leonardi, Regional Director for Asia at Generali, said: “China is the second largest general insurance market in the world in terms of premiums, with an attractive growth profile. This deal, which sees Generali take full ownership of GCI, will build on the business high quality developed together with CNBC Capital.We are confident that we, together with the management team and employees, can take advantage of the diversified opportunities in this market and become a lifelong partner for more customers all over China.
Did you get value from this story? Subscribe to our free daily newsletters And get stories like this sent directly to your inbox.