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AXA to strengthen base in China

India Infoline News Service | Mumbai |

AXA Group aims to buy a 50% stake of Shanghai Tianping Auto Insurance Co Ltd

French insurer AXA Group plans to strengthen its base in China’s booming auto insurance sector, according to a media report.

AXA Group aims to buy a 50% stake of Shanghai Tianping Auto Insurance Co Ltd to gain a strong base in China, the report added.

AXA will buy 33% of Tianping from its existing shareholders for 1.9 billion yuan (US$304.7 million) and invest another 2 billion yuan to support its future growth.
 
AXA's Chinese property and casualty (P&C) insurance unit will merge with Tianping, the French insurer said in a statement on Wednesday.

The acquisition is still subject to the approval of the China Insurance Regulatory Commission, the statement added.

The Chinese P&C insurance market has grown at an annual rate of 23% since 1981, reaching a total premium income of 564 billion yuan in 2011.

Tianping, established in 2004, is the first insurer to specialize in car insurance in China and is one of the first insurers to win a direct distribution license.



 

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