Munich Re’s ERGO Group has agreed to buy a stake of 24.9% in Taishan Property & Casualty Insurance (Taishan Insurance), a property and casualty (P&C) insurer headquartered in Shandong, China.
Financial terms of the transaction were not revealed.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
ERGO Group will execute the deal through its subsidiary ERGO Versicherung. The deal awaits nod by relevant authorities.
The firm believes that the deal would boost Taishan’s market offering as China’s financial services sector opens up.
ERGO Group has been operating in China since 2005.
In 2019, the firm set up ERGO China, its regional headquarters, for managing its activities in China.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataPreviously, the firm launched a life insurance joint venture called ERGO China Life with Shandong State-owned Asset Investment.
ERGO China CEO Jürgen Schmitz called the deal a “strong entry point into China’s P&C market” for the firm.
Schmitz noted: “Through this investment, ERGO Group has the opportunity to share our insurance expertise and global resources with Taishan Insurance and to boost our innovative capabilities and competitiveness in the Chinese market.”
Taishan is supervised by the Shandong Provincial State-Owned Assets Supervision and Administration Commission.
Incorporated in 2011, the insurer has 11 provincial branches, 42 centre sub-branches along with 119 sub-branches and marketing and service offices.
Its services include property insurance, liability insurance, short-term health insurance, credit and guarantee insurance, accident insurance, reinsurance, among others.
The business has a registered capital of CNY2.03bn ($287.1m).
Shandong State-owned Assets Supervision and Administration Commission director Zhang Bin said: “The strategic investment by ERGO Group will maximise resources from both sides to further drive Taishan’s development in the areas of competitiveness, innovation and risk control, and contribute to the high-quality economic development of Shandong Province.”
