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Daily Insurance Industry News
Saturday 20th of January 2018
February 28, 2011

Zurich announces reduced stake in NCI

by Richard Kilner

Story link: Zurich announces reduced stake in NCI

Zurich announces reduced stake in NCI

Zurich Financial Services Group has announced that it has reduced its stake in New China Life Insurance from 20% to 15%.

The 5% was sold to undisclosed buyers, with the sale price moderately exceeding the respective book value at year-end, and Zurich is to retain its 15% stake in New China Life Insurance (NCI).

NCI’s gross written premiums last year totalled US$13.8bn, and from 2005 to 2010 it averaged an annual premium growth rate of 40%.

NCI has an 8.9% stake in the Chinese life insurance market, and Zurich first invested in the firm over 10 years ago.

Zurich Chief Executive Officer Martin Senn explained that the 5% sale decision was made as the firm sought to manage its exposure to a business which it does not control.

Senn added that Zurich retained the 15% stake as it maintained confidence in the prospects of NCI and the Chinese life insurance market more generally.

In November last year Zurich made a US$420m investment in NCI to retain its stake at 20%.

The deal, which requires regulatory approval, is expected to be concluded during the second quarter of the year.

 

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