Axa Takes Full Control of Its China Joint Venture for USD662 Million
Yicai Global
DATE:  Nov 28 2018
/ SOURCE:  yicai
Axa Takes Full Control of Its China Joint Venture for USD662 Million Axa Takes Full Control of Its China Joint Venture for USD662 Million

(Yicai Global) Nov. 27 -- French insurer Axa plans to spend CNY4.6 billion (USD662 million) to buy the remaining 50 percent of its Chinese joint venture, making it the first foreign firm to wholly own a top 20 property and casualty insurer in the country.

The Paris-based company has struck a deal with the five other shareholders of Axa Tianping Property & Casualty Insurance to give it full control, Hubei Biocause Pharmaceutical, Axa Tianping's fourth-largest shareholder, said in a statement today. Almost a third of the transaction value will be financed by reducing the subsidiary's capital, it added.

Axa Tianping is the largest foreign-backed insurer in China and has CNY846 million (USD122 million) in registered capital. It was formed in 2004 via the merger of Tianping Auto Insurance and Axa's wholly-owned property insurer in China.

"Axa Tianping represents a unique platform for Axa to capture fully the significant growth potential of the P&C and health markets in China," Axa Chief Executive Thomas Buberl said in the buyer's own statement. "This is a 'first of its kind' transaction in the Chinese insurance market whereby a leading P&C insurer, with a nationwide footprint, will be fully owned by a foreign company."

Editor: James Boynton

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Keywords:   Hubei Biocause,AXA,P&C