Chubb has reached an agreement to purchase an additional 15.3% stake in China-based Huatai Insurance Group.

The deal is valued at approximately CNY10.8bn ($1.53bn), according to Reuters.

With the completion of the proposed takeover, Chubb holding in Chinese insurer will increase to 46.2%.

The latest announcement follows the regulatory approval by China Banking and Insurance Regulatory Commission (CBIRC) of other deal that increase Chubb stake to 30.9%.

In March, Chubb secured permission from the CBIRC to increase its ownership in Huatai Insurance Group Company to 26.2% from 20%.

Huatai Insurance Group is the holding company of Huatai Life Insurance Company, Huatai P&C Insurance Company, and Huatai Asset Management Company, along with other subsidiaries. Huatai Group’s insurance units serve nearly 11 million customers through over 600 branch offices.

As per the terms of the agreement, Chubb will acquire the shares from the Inner Mongolia Junzheng Energy and Chemical Group and one of its wholly owned subsidiaries.

Additionally, the parties have agreed for an additional 7.1% stake purchase in Huatai Insurance following the completion of the first deal.

Commenting on the deal, Chubb chairman and CEO Evan Greenberg said: “Earlier this year, following approval from the CBIRC, we increased our ownership in Huatai Insurance Group, which became the first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture.

“The agreement we are announcing today is another important milestone toward our goal of majority and beyond ownership in Huatai.

“We are committed to supporting Huatai as a long-term strategic shareholder and we have great confidence in the long-term potential of the Chinese insurance market.

“We are builders at Chubb, and our increasing stake in Huatai is an opportunity to build a great Chinese insurance company that will meet the growing protection needs of Chinese consumers and businesses.”

The transaction is subject to regulatory approvals and other customary closing conditions.