Property and casualty insurer Chubb has secured permission from the China Banking and Insurance Regulatory Commission (CBIRC) to increase its ownership in Huatai Insurance Group Company.
Subsequently, Chubb will increase its stake in Chinese insurance company to 26.2% from its current holding of 20%.
The approval will enable Huatai Group to become the first domestic Chinese financial services holding company as a Sino-foreign equity joint venture (JV).
China looks comfortable in allowing the US business to take control of domestic insurers
Financial Times reported that the Chinese regulators have amended a regulation that will enable Chubb to take its stake more than 50%.
Huatai Insurance Group is the parent company of Huatai P&C Insurance Company, Huatai Life Insurance Company, Huatai Asset Management Company, Huatai Baoxing Fund Management Company, among other subsidiaries.
Huatai Group’s insurance business serves more than 11 million customers through over 600 branch offices.
Chubb chairman and CEO said: “We made our first investment in Huatai in 2002 and became the company’s largest shareholder. This increased ownership is an important milestone towards our goal of majority and beyond ownership.
“Chubb’s continuous investment in China over the past 17 years, including our wholly owned Chubb China subsidiary, demonstrates our long-term commitment to the development of a strong Chinese financial services industry and the important role it plays in serving Chinese society and the welfare of its people.”
Earlier, Hong Kong-based AIA was the only international firm, which was granted permission to have full control over a life insurance company in China.