Generali enhances its strategic position in China, becoming the 100% shareholder of Generali China Insurance Company Limited (GCI), leveraging its market presence and platform for future growth.
Generali has signed an agreement for the acquisition of 51% of Generali China Insurance Company Limited for a consideration of approximately EUR 99 million.
Upon completion, Generali will become the 100% shareholder of GCI. The signing follows the public auction process initiated by CNPC Capital, as per the disclosure made by the China Beijing Equity Exchange on 2nd November 2023. The completion of the transaction is subject to regulatory approvals.
The estimated impact on the Generali Group’s Regulatory Solvency Ratio is around -1 p.p.
The acquisition represents a long-term strategic investment to develop a fully owned and controlled general insurance business in China, positioning Generali well to capture an increasing share of the growing Chinese market.
Upon completion, Generali will become the first foreign player to acquire a controlling stake of a Property & Casualty insurance company from a single state-owned entity in China purely via a Mandatory Public Auction process.
As sole owner of GCI, Generali will seek to expand its distribution network in China; build on China’s investments towards carbon neutrality to expand green business insurance in order to differentiate Generali in the market; and leverage the Group’s global, regional and local know-how to improve GCI’s distribution strategy.
Generali and CNPC Capital remain joint-venture partners in Generali China Life Insurance Company, created in 2002, which recorded in excess of EUR 3 billion of gross written premiums in 2022, as well as in Generali China Asset Management Company.
Becoming the sole owner of GCI will enable us to further expand our offering, our reach, and our distribution network. Ourg partnership will continue in the Life insurance joint-venture Generali China Life, covering Life, Health and Asset ManagementJaime Anchustegui, CEO International at Generali
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 business that has been developed with CNPC Capital.
UBS acted as financial advisor to Generali on the transaction. Fangda Partners acted as legal advisor.
Generali China Life Insurance Co., Ltd. (GCL), established in 2002, was the first Sino-foreign joint-ventured insurer approved by the Chinese Government following China’s accession to the WTO.
GCL, a collaboration between China National Petroleum Corporation (CNPC) and Assicurazioni Generali S.p.A. (Generali Group), has evolved significantly. With a registered capital of RMB 3.7 billion and total assets exceeding RMB 100 billion, GCL is a major player in China’s insurance market.
The company offers a range of insurance products, including life, accident, health, investment-oriented insurance, and employee benefits programs. Headquartered in Beijing, GCL has expanded to 15 branches across various provinces, committed to providing high-quality insurance services and leveraging Generali’s global expertise.