(Yicai) May 21 -- A unit of Ageas, Belgium's largest insurer, will spend around CNY1.1 billion (USD151.6 million) to acquire a 10 percent stake in China's state-owned Taiping Pension to bet on the pension insurance business of the aging society.

Ageas Insurance International will purchase newly issued shares in the subsidiary of China Taiping Insurance Holdings to have a tenth of the enlarged total, the Chinese financial behemoth announced yesterday.

Brussels-headquartered Ageas will have an option of buying more shares within three years to have nearly 25 percent of the total.

Established in 2004, Taiping Pension is one of China's largest pension insurance companies. It also offers employee benefits insurance. Before the transaction, China Taiping and its subsidiaries own all its equity.

"As a country facing significant demographic challenges driven by an aging population, resulting in a rapidly increasing demand for retirement savings products, we view this as a very exciting opportunity to engage in a market that has been prioritised by the Government," Hans De Cuyper, chief executive of Ageas, said in a statement yesterday.

The introduction of Ageas as an investor could help Taiping Pension supplement its capital and support business development, the Chinese parent said. Meanwhile, Taiping Pension will study Ageas' management model and experiences in the design, sales, customer service, and investment operations of pension insurance products in mature markets, it added.

Editor: Emmi Laine