Swiss Re, a Zurich-based reinsurance company, has confirmed its intention of investment in China Pacific Insurance Company (CPIC).
The confirmation was in response to a report by Bloomberg that stated that CPIC eyes a stake in Swiss Re for a minimum investment of $2bn.
The report also said that Swiss Re would invest $500m to $1bn to pick a minority interest in CPIC.
The reinsurer has now confirmed that it is weighing an investment in a possible sale of CPIC securities.
As of now, the two parties have not reached any definitive agreement, stressed Swiss Re.
The Swiss firm stated: “Any securities offering by CPIC remains subject to various contingencies, including CPIC’s decision to proceed with any such offering.”
“Separately, Swiss Re has no current intention of issuing new shares or making treasury shares available to any potential investor.”
Swiss Re aims to expand its reach in Asia. It considers the option of an anchor investor after Japan’s SoftBank Group aborted plans of investment.
Notably, in May this year, Swiss Re’s Beijing unit collaborated with online lender WeBank to explore the use of artificial intelligence (AI)-powered models in reinsurance.
This September, Swiss Re unit iptiQ Americas partnered with South Korean technology giant Samsung Electronics to close life and health (L&H) insurance protection gap.
The reinsurer was reportedly also in talks with authorities in China regarding investment in troubled insurer Anbang.