Major e-commerce firm JD.com has received regulatory approval to purchase a 30% stake in Allianz’s China unit, joining other tech giants such as Alibaba and Tencent in entering the insurance sector.
The China Banking and Insurance Regulatory Commission (CBIRC), has given its permission for the RMB483 million (US$71.3 million) transaction, reported Chinese financial news portal Caixin.
Following the investment, JD.com will become Allianz China’s second-largest shareholder, although it will be slightly smaller than its initial plan of a 33% holding announced in April. Allianz will own 50% of the venture, with three other Chinese firms, China Sinda Intellectual Property Ltd, Shenzhen Huijing Tongda Business Consulting Co., and Shanghai Snow Light Capital, holding 12.4%, 4.27%, and 3.33% respectively
Allianz China, which was established in 2003 in Guangzhou, and offers motor, property, liability and domestic credit insurance, as well as short-term health insurance and accident insurance for individual and corporate clients, the company’s website said.
In 2016, Alibaba-backed Ant Financial acquired a 51% stake in Taiwanese insurer Cathay Century Insurance Co., while Tencent was given approval to sell insurance products through its WeChat messenger platform.
