Belgian insurer Ageas has sealed a deal to invest around €137m (1.07bn yuan) to acquire a stake in Taiping Pension (TPP), a subsidiary of China Taiping Insurance Holdings.
This investment will give Ageas a 10% stake in the expanded share capital of TPP, a move to tap the Chinese pension market’s potential by capitalising on the increasing demand for personal pension products in China.
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It also aims to strengthen Ageas’ presence in China, diversify its business offerings and consolidate its long-standing partnership with China Taiping.
Shanghai-based TPP, set up in 2004, is reputed to be one of China’s largest pension insurance companies.
With two major business segments in pension and employee benefits insurance, TPP managed pension assets worth €71bn ($77.17bn) in 2023.
Ageas CEO Hans De Cuyper said: “We look forward to working alongside our long-standing partner to offer pension solutions to the Chinese people.
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By GlobalData“As a country facing significant demographic challenges driven by an ageing population, resulting in a rapidly increasing demand for retirement savings products, we view this as a very exciting opportunity to engage in a market that has been prioritised by the government.
“We are convinced the development of the private pension market holds potential for growth and that it will be a positive contributor to the future development and performance of Ageas.”
The completion of the deal is contingent on regulatory approvals and is anticipated in the first quarter of 2025.
In April this year, BNP Paribas Cardif, the insurance subsidiary of the French financial services company BNP Paribas, agreed to acquire approximately 9% of Ageas from Fosun Group.
The €730m deal will be executed in two phases, with an initial 4.8% share transfer occurring shortly and the remainder following regulatory approval.
These developments come after Ageas’ discontinued attempts to acquire Direct Line Insurance Group following two unsuccessful buyout efforts.
