Property and casualty insurer Chubb has secured the clearance from the China Banking and Insurance Regulatory Commission to raise its stake in China’s Huatai Insurance Group Company to 83.2%.

Financial terms of the deal, which is expected to complete early in the first quarter of next year, were not shared.

The rise in ownership from the previous 47.3% interest is the result of a 20-year effort, stated Chubb.

A holding company for several subsidiary companies, Huatai generated total revenue of over $2bn last year.

It comprises Huatai Property & Casualty Insurance Company, Huatai Life Insurance Company, and Huatai Asset Management Company.

Huatai Group had assets of more $10bn, excluding third party funds, and more than $2bn in equity at the end of September 2022.

The company offers insurance services through more than 700 branches and 23,000 agents, serving a client base of 19 million in China.

Huatai Asset Management manages more than $100bn in assets for institutional, pension and retail mutual fund businesses.

According to Chubb chairman and CEO Evan Greenberg, Huatai will contribute meaningfully to Chubb’s revenue and earnings in the coming days.

Greenberg noted: “Upon the closing of the acquisition of these shares, Chubb will be the first foreign financial institution to majority-own a Chinese financial services holding company, with separate P&C, life, asset management and mutual fund subsidiaries.

“China is currently the second largest insurance market after the United States. With an aging and more affluent society comes the growing demands for insurance and asset management products and services.” 

Meanwhile, in September this year, Bloomberg reported that Chubb is in advanced discussions to create a bancassurance alliance with Hang Seng Bank