According to Reuters, the transaction involves subscribing to new shares worth 228 million yuan (US$31.40 million).
Established in 2022, Guomin Pension is a joint initiative by some of China’s largest banks and insurance firms to develop the private pension market.
With AGI’s investment, Guomin Pension’s registered capital will increase to 11.4 billion yuan, positioning it among the top capitalised asset managers in the country.
Foreign financial institutions are increasingly interested in China’s burgeoning private pension sector, which is considered lucrative due to the shrinking public pensions and an aging demographic.
Allianz’s stake acquisition comes shortly after it received approval to set up a wholly-owned fund unit in China, aimed at serving retail and institutional investors, including future pensioners.
The investment comes on the heels of Allianz SE’s latest financial report, which revealed a 6.8% increase in its operating profit for the first quarter of 2024 (Q1 2024), totalling €4 billion – up from €3.7 billion in the same quarter the previous year. This growth was supported by balanced contributions from its insurance services and investment sectors.
The company’s total business volume expanded by 5.3% to €48.4 billion, with contributions from all divisions.
The property-casualty segment experienced significant growth through effective pricing strategies, while the life/health segment saw gains from strong sales in the US and Italy. The asset management division posted an internal growth rate of 7.5%, driven by higher assets under management and performance fees.
Net income attributable to shareholders rose from €2 billion to €2.5 billion, and core earnings per share (EPS) increased from €5.43 to €6.42. The annualised core return on equity (RoE) improved to 17.4%, compared to 16.1% at the end of 2023.
CFO Claire-Marie Coste-Lepoutre highlighted the firm’s strategic achievements.
“Allianz’s strong performance in the first quarter demonstrates our unwavering commitment to value creation,” she said.
She pointed out successes across various business lines, noting robust internal growth and discipline in property-casualty, widespread growth and attractive margins in life/health, and significant third-party net inflows and performance fees in asset management.
“We had a very good start into the year and our ability to create value for our shareholders is supported by a strong Solvency II ratio of 203%. We confirm our full-year outlook of an operating profit of €14.8 billion, plus or minus €1 billion,” she said.
