Generali strengthens its position in Asia and becomes 100% shareholder of the P&C company in China Generali strengthens its position in China rising to 100% of Generali China Insurance (Gci). The Leo company has signed an agreement for the acquisition of 51% of the Chinese company for an amount equal to approximately 99 million. Having already held a 49% stake, at the closing, Generali will become a 100% shareholder of Gci itself.
Generali: the details of the agreement with Gci
The agreement - according to a note - follows the public tender process launched by CNPC Capital, as announced on the China Beijing Equity Exchange on November 2, 2023. The completion of the transaction is subject to regulatory approvals.
According to information provided by Generali, the estimated impact on the Solvency Ratio of the company led by Philippe Donnet will be equal to approximately -1 percentage point.
The acquisition “represents a long-term strategic investment to develop a wholly owned P&C business in China, allowing Generali to strengthen itself with an ever-increasing share in the growing Chinese market. Upon closing of the transaction, Generali will become the first foreign operator to acquire the controlling stake in a P&C company from a single state body in China, exclusively through a mandatory public auction procedure", the note continues.
Generali's Chinese objectives
As the sole shareholder of Gci, Generali plans to expand its distribution network in China; leverage Chinese investments towards carbon neutrality to "expand the offer of insurance solutions with ESG components, bringing out Generali's distinctive profiles on this market; leverage the group's global, regional and local know-how to improve Gci's distribution strategy,” concludes a note.
Jaime Anchústegui, CEO International of Generali, commented: “The acquisition is fully in line with the group's strategic plan, which aims to strengthen our presence in the main Asian markets. Becoming the sole shareholder of GCI will allow us to further expand our offering, presence and distribution network. I would like to thank Cnpc Capital for its contribution and fruitful collaboration with Generali in the development of Gci, to date and also looking to the future. Our constructive, long-term and future-oriented partnership will continue successfully through the Generali China Life insurance joint venture, focused on the Life, Health and Asset Management segments."
Rob Leonardi, Asia Regional officer of Generali, added: “China represents the second largest insurance market in the world in terms of premiums, with an attractive growth profile. This operation, which sees Generali acquire full ownership of the P&C company, will leverage the high quality business developed together with CNPC Capital. We are confident that together with the management team and colleagues we will be able to seize the multiple opportunities of this market and become Lifetime Partners of a growing number of customers across China.”
