Swiss Re invests $493mn for 4.9% stake in New China Life

New China Life is a Chinese company which provides life and health insurance products

November 21, 2013 8:56 IST | India Infoline News Service
Swiss Re announced that it has entered into a transaction with Zurich Insurance Company Ltd to acquire a 4.9% stake in New China Life Insurance Company Ltd, reaffirming Swiss Re's commitment to high growth markets.

New China Life is a Chinese company which provides life and health insurance products. Headquartered in Beijing, New China Life is the third largest life insurer in China based on gross premium.

Swiss Re is acquiring directly from Zurich Insurance Company 152.9 million New China Life H shares (which are listed on the Stock Exchange of Hong Kong), representing 4.9 % of the total issued share capital of New China Life (which includes both H shares listed in Hong Kong and A shares listed in Shanghai). The total consideration of the transaction is HKD 3,821 million (USD 493 million).

John R. Dacey, Swiss Re's Group Chief Strategy Officer, says: "China is the fifth largest life insurance market in the world, but its penetration is still relatively low. Investing in New China Life enables us to tap into this growth potential. It also reaffirms Swiss Re's commitment to the high growth markets and its strategy of making investments in leading insurance franchises."

The transaction is expected to complete on 25 November 2013.

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