Generali, a global insurance giant, has announced its agreement to secure the remaining 51% stake in Generali China Insurance Company Limited (GCI), thereby becoming the exclusive proprietor of the property and casualty insurance business in China.
The transaction, valued at approximately €99 million, signifies a pivotal move in Generali’s strategic expansion within crucial Asian markets. The acquisition, a result of a public auction process initiated by CNPC Capital, aligns seamlessly with Generali’s overarching ‘Lifetime Partner 24: Driving Growth’ strategy, geared towards solidifying its presence in key Asian markets.
Subject to regulatory approvals, the deal is expected to exert an estimated -1 percentage point impact on the Generali Group’s Regulatory Solvency Ratio.
Upon completion, Generali will etch its name in history as the first foreign entity to secure a controlling stake in a Property & Casualty insurance company from a singular state-owned entity in China through a Mandatory Public Auction process.
Generali envisions leveraging its newfound full ownership of GCI to broaden its distribution network in China. The company aims to capitalize on China’s investments in achieving carbon neutrality by enhancing its green business insurance offerings.
Jaime Anchústegui, CEO International at Generali, emphasized the strategic coherence of this acquisition with the Group’s broader strategy, aimed at fortifying its foothold in key Asian markets. Anchústegui stated, “Becoming the sole owner of GCI will enable us to further expand our offering, our reach, and our distribution network.”
Generali’s plans include utilizing its global, regional, and local expertise to refine GCI’s distribution strategy, differentiating itself in the competitive market.
Furthermore, Generali intends to sustain its successful partnership with CNPC Capital in the Life and Asset Management segments through their joint-venture Generali China Life Insurance Company Limited, established in 2002. This joint venture recorded over €3 billion in gross written premiums in 2022.
Rob Leonardi, Asia Regional Officer at Generali, highlighted China’s strategic significance in the global insurance market. He expressed confidence that the acquisition positions Generali to seize opportunities and emerge as the preferred insurance partner for a growing number of customers across China.
In facilitating this transaction, UBS served as the financial advisor, while Fangda Partners acted as the legal advisor for Generali.
