market has been opened for UK insurer Old Mutual in an unusual
manner: a Chinese regulatory requirement that has compelled
Belgo-Netherlands bancassurer Fortis to sell its stake in one of
two Chinese joint ventures (JV).
For Fortis, the choice was to sell its 49 percent stake in Fortis
Haitong or its 49 percent stake in ABN AMRO TEDA Fund Management
(AATEDA), company shares it inherited as part of its recent
acquisition of a portion of the Netherlands bank ABN Amro.
Go deeper with GlobalData
Fortis’ decision was to sell its AATEDA stake to Old Mutual, a
choice Lex Kloosterman, a member of Fortis Group’s executive
committee, said was supported by AATEDA’s other JV partner, Chinese
conglomerate Tianjin TEDA Investment Holding Company.
The choice of which JV stake to sell was, between “two very
successful companies,” stressed Kloosterman.
Under the terms of the cash deal, Old Mutual will pay Fortis €165
million ($240 million) for its stake in AATEDA which had assets
under management of CNY21.1 billion ($3 billion) as at 30 June
2008.
Commenting on the deal, Old Mutual Asia Pacific president Steffen
Gilbert said: “This is a rare opportunity to buy a sizeable stake
in a well established and well managed asset management business in
the region.”
He added that the JV would play “a significant role” in developing
Old Mutual’s regional strategy.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAs part of the strategy Old Mutual established its Asia-Pacific
headquarters in Hong Kong in January 2008 and appointed Gilbert to
head operations in the region.
Prior to his appointment Gilbert was CEO of Santam, South Africa’s
largest general insurer. Gilbert has also held the position of CEO
of German reinsurer Munich Re’s Sub-Saharan unit.
In the region Gilbert overseas operations that in China already
include the country’s seventh-largest foreign-affiliated life
insurer in terms of premium income, Skandia-BSAM Life Insurance, a
50:50 JV with Beijing State Assets Management Company.
In India, Old Mutual has a 26 percent stake in Kotak Mahindra Life
Insurance in a JV with Indian bank, Kotak Mahindra Bank; while in
Australia its Australian Skandia unit markets retail mutual and
institutional investment funds.
