The agreement, following a public auction initiated by CNPC Capital and announced by the China Beijing Equity Exchange on Nov. 2, 2023, is pending regulatory approvals. The transaction is expected to have a minor impact on Generali Group’s Regulatory Solvency Ratio, estimated at around –1%.
This strategic investment also underscores Generali's commitment to the Chinese insurance market, positioning the company to capitalise on the growing demand in this sector. With this acquisition, Generali becomes the first foreign company to gain a controlling interest in a Chinese P&C insurance company through a mandatory public auction process.
As the new sole owner of GCI, Generali aims to expand its distribution network in China. The company plans to focus on green business insurance, aligning with China's carbon neutrality goals, and leverage its global expertise to enhance GCI's distribution strategies.
Generali's presence in China is further bolstered by its existing joint ventures with CNPC Capital. These include Generali China Life Insurance Company, established in 2002, which reported over €3 billion in gross written premiums in 2022, and Generali China Asset Management Company.
UBS served as the financial advisor, and Fangda Partners as the legal advisor to Generali for this transaction.
“This acquisition is fully aligned with our group strategy, which aims at strengthening our footprint in key Asian markets,” said Jaime Anchústegui, CEO of Generali International. “Becoming the sole owner of GCI will enable us to further expand our offering, our reach, and our distribution network. I would like to thank CNPC Capital for its contribution and close collaboration in developing GCI together with Generali until now and in the future. Our constructive long-term and forward-looking partnership will continue successfully in the life insurance joint-venture Generali China Life, covering life, health, and asset management.”
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