AXA announced it has entered into an agreement with the current domestic shareholders of AXA Tianping Property & Casualty Insurance Co. Ltd. to acquire the remaining 50 percent stake of the company.
Total consideration for the acquisition of the 50 percent stake would amount to 4.6 billion renminbi (584 million euros or US$660.7 million).
AXA said that, subject to legal approvals, RMB 5 million (190 million euros or 215 million US Dollars) will be financed through capital reduction to reinstate AXA Tianping’s shares from existing domestic shareholders.
Olarak AXA Tianping is a unique platform for AXA to fully capture the potential growth potential of the Chinese P / C and health markets, platform said Thomas Buberl, CEO of AXA.
Edi This is the ağ first of its kind ek in the Chinese insurance market, adding that with a nationwide footprint, a leading P / C insurance company will belong to a completely foreign company. ”The purchase confirms our belief that our operations in China will be a significant growth engine in the Group and its preferred segments.“
In 2017, AXA Tianping ranked 15th in China’s P / C insurance companies with a gross written premium (GWP) of € 1 billion (US $ 1.1 billion), single foreign investment company. .
Expressing the figures from the Banking and Insurance Regulatory Commission of China, AXA is the sixth largest company of motor insurance directly. Motor insurance in China accounts for 91 percent of the AXA’s GWP, where 41 percent are distributed directly through channels. Also sells short-term health insurance products, the company continued.
AXA said it has developed a national footprint with 25 branches and 93 sub-branches covering 20 states, accounting for 85 percent of China’s GDP.
Ve The transaction took another step to strengthen our position as the # 1 foreign insurer in China and to strengthen our leadership in the Asian region, imizi said Gordon Watson, CEO of AXA Asia.
Edi With AXA Tianping’s full ownership and management control, we will accelerate the deployment of our strategy to create a leading insurer that promotes health and mobility solutions, “he added.
En Combining AXA Tianping’s high-quality infrastructure with AXA’s expertise in health and digital space enables us to target our preferred customer segments to selectively build long-term value for motor jobs; a holistic offering,, said Watson.
The completion of the transaction is subject to the traditional closure requirements, including the adoption of regulatory approvals, most notably from the Chinese Banking and Insurance Regulatory Commission. Upon completion of the transaction, AXA Tianping will be fully consolidated into the financial statements of AXA Group.
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