Chubb Ltd. announced it has received regulatory approval from the China Banking and Insurance Regulatory Commission to increase the company’s ownership in Huatai Insurance Group Co. Ltd. from 47.3 percent to 83.2 percent.
Financial details of the deal were not disclosed.
Huatai is the holding company of a number of subsidiary companies including Huatai Property & Casualty Insurance Co., Huatai Life Insurance Co. and Huatai Asset Management Co. Huatai’s insurance operations have 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, pension and retail mutual fund businesses.
As of Sept. 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,” Greenberg added.
The company expects the transaction to close early in the first quarter of 2023 and will provide additional information in the near future.