(Yicai Global) Nov. 22 -- Swiss insurer Chubb is increasing its majority stake in China’s Huatai Insurance Group to over 50 percent as it snaps up the equity held by two firms under Chinese healthcare to investment conglomerate Dangdai Science and Technology Industries Group for a combined CNY2.8 billion (USD439 million).

Humanwell Healthcare and Tianfeng Securities will sell their respective holdings of 2.52 and 4.45 percent equity in Nanjing-based Huatai Insurance, raising CNY1.03 billion (USD161.4 million) and CNY1.81 billion respectively, to Zurich-based Chubb, the pair said on Nov. 19.

Chubb now holds a 53 percent stake in the Beijing-based insurer, which earned a tidy profit of CNY971 million (USD152 million) in the first nine months on revenue of CNY12.4 billion.

Chubb, which is the world’s biggest property and casualty insurer, bought a 22.4 percent stake in Huatai in November 2019, making it the first foreign-owned Chinese insurer. Chubb has since gradually increased its stake in Huatai, which offers property and casualty insurance, life insurance and asset management services, and held 46.2 percent before this transaction.

The funds raised will be used to promote Humanwell’s core businesses of healthcare research and development as well as drug sales. Humanwell has in recent years sold off poorly performing assets such as those in sexual health, it added.

Dangdai still holds a 11 percent stake in Huatai Insurance through two other firms. The Wuhan, central Hubei province-based firm owns 29.71 percent of Humanwell and 11.47 percent of Tianfeng Securities. It had total assets of over CNY100 billion (USD15.7 billion) as of September last year.

Humanwell’s share price [SHA:600079] closed up 2.53 percent at CNY22.31 (USD3.50) today, giving it a market capitalization of about CNY36.4 billion (USD5.7 billion). Tianfeng Securities [SHA:601162] remained little moved from yesterday at CNY3.94 with a market valuation of CNY34.1 billion.

Editors: Dou Shicong, Kim Taylor