(Alliance News) - Assicurazioni Generali Spa announced Wednesday that it has signed an agreement to acquire 51 percent of Generali China Insurance Company Limited, for a consideration of approximately EUR99 million. Upon closing, Generali will become a 100 percent shareholder in GCI.

The agreement follows the public tender process initiated by CNPC Capital, as announced on the China Beijing Equity Exchange on November 2. Completion of the transaction is subject to regulatory approvals.

The estimated impact on Generali's Solvency Ratio is negative by about 1 percent.

The acquisition represents a long-term strategic investment to develop a wholly owned non-life business in China, allowing Generali to strengthen itself with an increasing share in the growing Chinese market. Upon closing of the deal, Generali will become the first foreign operator to acquire a controlling interest in a non-life company from a single state-owned entity in China, exclusively through a mandatory public auction process.

As GCI's sole shareholder, Generali plans to expand its distribution network in China; leverage China's investments toward carbon neutrality to expand its offering of insurance solutions with ESG components, bringing out Generali's distinctive profiles in this market; and leverage the Group's global, regional, and local know-how to enhance GCI's distribution strategy.

Generali and CNPC Capital will remain partners in the joint ventures Generali China Life Insurance Company Limited - the company active in the Life segment created in 2002, which recorded more than EUR3 billion in premiums in 2022 - and Generali China Asset Management Company.

Jaime Anchústegui, Generali's CEO International, commented, "The acquisition is fully in line with the group's strategic plan, which aims to strengthen our presence in key 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 cooperation 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 Life, Health and Asset Management segments."

Rob Leonardi, Generali's Asia Regional Officer, added, "China represents the second largest insurance market in the world in terms of premiums, with an attractive growth profile. This transaction, in which Generali acquires full ownership of the non-life 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 many opportunities in this market and become a Life partner to a growing number of clients throughout China."

Generali's stock is up 0.1 percent at EUR19.70 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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