US insurer Prudential Financial is exploring the option of acquiring a minority stake in China-based ABC Life Insurance, reported Bloomberg citing sources privy to the development. 

The size of the stake to be divested may vary between 20% and 49%, according to the sources. The transaction may also include a “bancassurance deal”.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Prudential Financial is reportedly in talks with a financial adviser in this regard.

Investors having a stake of around 49% in ABC Life are looking to offload a minority interest, reported the news agency.

A deal, if materialised, would value the life insurance business at nearly $3-4bn.

The offer in ABC Life, a firm controlled by Agricultural Bank of China, has attracted the attention of other financial institutions as well, the sources said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

As per the sources, the discussions on the stake sale are ongoing and have no certainty of success. New bidders could also surface.

Representatives from Prudential Financial and ABC Life did not give any official confirmation on the matter.

Through the potential transaction, Prudential Financial seeks to expand its presence in China.

The company along with a subsidiary of China Everbright Group already has a joint venture in the country. It also operates a venture with Fosun Group, an investment firm in China.

ABC Life provides a wide range of offerings including life, health and accident insurance, as per AgBank’s annual report.

Some of its minority shareholders include Beijing Zhongguancun Science City Construction Holdings, Tibet Tengyun Investment Management and China New Era.