Generali buys 100% of its Chinese P&C insurance line

The estimated impact of the groups’ Regulatory Solvency Ratio would be -1 p.p.

Generali will have 51% of its Generali China Insurance Company (GCI) shares for about $108.4m. This will make Generali a 100% GCI shareholder upon the acquisition's end.

This comes after the announcement of CNPC Capital in its local bourse on 2 November 2023. However, the completion of the transaction is subject to regulatory approvals, indicated Generali.

The insurer said the estimated impact of the groups’ Regulatory Solvency Ratio would be around one percentage point lower.

Upon completion, Generali will be the first foreign entity to acquire a controlling stake in a Property & Casualty (P&C) insurance company from a single state-owned entity in China through a Mandatory Public Auction process.

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As the sole owner of GCI, Generali plans to expand its distribution network in China, capitalise on the country's investments in carbon neutrality for green business insurance, and leverage its global expertise to enhance GCI's distribution strategy. 

Despite this acquisition, Generali and CNPC Capital will continue their joint venture in Generali China Life Insurance Company, established in 2002, which reported over $3.3b in gross written premiums in 2022, and Generali China Asset Management Company.

(€1.00 = $1.10)