Chubb Ltd. announced that it has received regulatory approval from the China Banking and Insurance Regulatory Commission to sell the company’s stake in Huatai Insurance Group Co. Ltd. increase from 47.3% to 83.2%.
Financial details of the deal were not disclosed.
Huatai is the holding company of a number of subsidiaries, including Huatai Property & Casualty Insurance Co., Huatai Life Insurance Co. and Huatai Asset Management Co. Huatai’s insurance business has more than 700 branches, 23,000 agents and approximately 19 million customers in China.
Huatai Asset Management has more than $100 billion in assets under management and is licensed to manage institutional, retirement and private investment funds.
As of September 30, 2022, Huatai Group had assets of more than $10 billion (excluding third-party funds) and equity of more than $2 billion. In 2021, Huatai had total sales of more than $2 billion.
“This is the culmination of a 20-year effort. Upon completion of the acquisition of these shares, Chubb will be the first foreign financial institution to hold a controlling interest in a Chinese financial services company, with separate subsidiaries for P&C, life insurance, asset management and mutual funds,” said Evan G. Greenberg, chairman and CEO of Chubb.
“China is currently the second largest insurance market after the United States. With an aging and more affluent society comes the growing demand for insurance and asset management products and services. We have a long-term vision and I am confident that Huatai will grow in time to make a meaningful contribution to our revenues and earnings in the future,” added Greenberg.
The company expects the transaction to close early in the first quarter of 2023 and will provide additional information in the near future.
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