Italian insurer Generali has successfully acquired the remaining 51% stake in Generali China Insurance Company for approximately €99 million ($108 million), marking a significant step in the company’s long-term strategy to enhance its position in the thriving Chinese market and fortify its presence in Asia.
As a result of the transaction, Generali is now the sole owner, holding a 100% stake in its Chinese property and casualty (P&C) insurance business. This acquisition comes on the heels of a public auction process initiated by Chinese carrier CNPC Capital.
Generali expressed that the acquisition is a pivotal move that will enable the development of a fully-owned and controlled general insurance business in China. It is expected to contribute to the expansion of Generali’s offerings, reach, and distribution network in the rapidly growing Chinese market.
This milestone positions Generali as the first foreign entity to acquire a controlling stake in a property and casualty insurance company from a single state-owned entity in China solely through a Mandatory Public Auction process.
With sole ownership of Generali China Insurance Company, the insurer plans to intensify its efforts to expand its distribution network in China. Additionally, Generali aims to capitalize on China’s investments in achieving carbon neutrality by expanding its green business insurance, differentiating itself in the market. The company plans to leverage its global, regional, and local expertise to enhance Generali China Insurance Company’s distribution strategy.
Generali and CNPC Capital will continue to be joint-venture partners in Generali China Life Insurance Company, established in 2002, which reported over €3 billion in gross written premiums in 2022. The partnership also extends to Generali China Asset Management Company.
The acquisition is anticipated to have an estimated impact of approximately -1 percentage point on Generali’s regulatory solvency ratio. Jaime Anchústegui, CEO International at Generali, emphasized that this acquisition aligns with the group’s strategy to strengthen its presence in key Asian markets.
Jaime Anchústegui stated, “This acquisition is fully aligned with our Group strategy, which aims at strengthening our footprint in key Asian markets. Becoming the sole owner of GCI will enable us to further expand our offering, our reach, and our distribution network.”
Rob Leonardi, Asia Regional Officer at Generali, expressed confidence in the opportunities presented by the Chinese market. He said, “China is the world’s second largest general insurance market by premiums, with an attractive growth profile. This transaction, which sees Generali obtain full ownership of GCI, will build on the high-quality business that has been developed with CNPC Capital.”
Leonardi added, “We are confident that together with the management team and employees, we can benefit from the various opportunities in this market and become the Lifetime Partner to even more customers across China.”
