Chubb Receives Regulatory Approval to Increase its Huatai Stake to 83.2%
Chubb Limited announced that it has received regulatory approval from the China Banking and Insurance Regulatory Commission to increase the company’s ownership in Huatai Insurance Group Company Limited (Huatai) from 47.3% to 83.2%.
Huatai is the holding company of a number of subsidiary companies including Huatai Property & Casualty Insurance Company, Huatai Life Insurance Company, and Huatai Asset Management Company. Huatai’s insurance operations have more than 700 branches, 23,000 agents and approximately 19 million customers in China. Huatai Asset Management has over $100 billion in assets under management and is licensed to manage institutional, pension and retail mutual fund businesses. As of September 30, 2022, Huatai Group had assets of over $10 billion (excluding third party funds) and equity of over $2 billion. In 2021, Huatai had total revenue of over $2 billion.
“This is the culmination of a 20-year effort. Upon the closing of the acquisition of these shares, Chubb will be the first foreign financial institution to majority-own a Chinese financial services holding company, with separate P&C, life, asset management and mutual fund subsidiaries,” said Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb. “China is currently the second largest insurance market after the United States. With an aging and more affluent society comes the growing demands for insurance and asset management products and services. We take a long-term view, and I am confident Huatai will grow in time to become a meaningful contributor to our revenue and earnings in the future.”
The company expects the transaction to close early in the first quarter of 2023 and will provide additional information in the near future.
Allianz receives regulatory approval to commence operation of China’s first fully foreign-owned insurance holding company
Allianz has received the approval from the China Banking and Insurance Regulatory Commission (CBIRC) to commence operation of China’s first fully foreign-owned insurance holding company. With this, Allianz will strengthen its proposition in the country and position the business to capitalize on the fastest growing economy in the world.
The approval follows a series of measures recently announced by the Chinese government to further open up and encourage investment in China by foreign financial insurance institutions. It is a great step towards the liberalization of the Chinese financial market.
Based in Shanghai, the Allianz (China) Insurance Holding Company Limited will support the growth ambitions in the country by enhancing Allianz’s strategic and financial flexibility to capture business opportunities, further increase Allianz’s investment and drive long-term success in the market.
As part of today’s announcement, Allianz has named, Sergio Balbinot as Chairman, Allianz (China) Insurance Holding Company Limited and Solmaz Altin as Chief Executive Officer of the Allianz (China) Insurance Holding Company Limited.
Sergio Balbinot, Chairman Allianz (China) Insurance Holding Company, said, “We sincerely thank the China Bank and Insurance Regulatory Commission for their constructive guidance and support during the preparation period. Allianz is extremely optimistic on China and we are committed to accelerating our growth plans in this strategic market. The regulatory approval for the holding company is an important landmark for our business and puts us in priority position to maximize on the opening up of the Chinese economy.”
Solmaz Altin, Chief Executive Officer, Allianz (China) Insurance Holding Company, said, “China is a strategically important market for Allianz in the region and today’s announcement underlines that commitment. With the new holding structure in place, we are able to better serve an expanding middle class with our range of financial solutions. Allianz aims to play a larger role in China’s insurance sector and grow with the market. We will continue to work under the guidance of the regulator to deepen our participation in a more open financial market to support the country’s economic growth.”
Allianz has been present in China since the early 1910s, serving customers with fire and marine insurance in its coastal cities. Today, Allianz employs more than 2,000 employees in the country, offering a full suite of services across protection, risk management and asset management.
The approved license follows preparatory work undertaken by Allianz to meet all regulatory requirements to establish the holding company, with the strong support and guidance of the regulatory authorities throughout.
Further announcements around the establishment of the holding company following registration with the Shanghai Market Administration and Registration Bureau (SMAR) will be made in due course.