Munich Re is to enter the Chinese Property and Casualty (P&C) market via an investment in Taishan Property & Casualty Insurance.
The reinsurers insurance subsidiary ERGO Group, revealed the investment in the Shandong-based nationwide P&C insurer at a signing ceremony in the city.
The transaction will see ERGO Group acquire a 24.9% stake in Taishan Insurance via its subsidiary ERGO Versicherung AG.
Dr. Markus Rieß, (pic) Chief Executive Officer and Chairman of the Board of Management of ERGO Group, said: “In our global portfolio, China holds a central role. Taishan Insurance is a dynamic and ambitious insurance company in the Chinese P&C market, which drives its business with great competence and determination. We are looking forward to building a strong partnership together and to bundling our strengths in this important market.”
“ERGO Group’s strategic investment into Taishan Insurance is a strong entry point into China’s P&C market that also complements our existing Life and Health businesses in China. Through this investment, ERGO Group has the opportunity to share our insurance expertise and global resources with Taishan Insurance and to boost our innovative capabilities and competitiveness in the Chinese market,” said Jürgen Schmitz, CEO ERGO China.
“We are pleased to have ERGO Group become our strategic shareholder. We look forward to working closely with ERGO Group to explore new business opportunities and introduce new business models and technologies to our customers,” said Zhu Huajian, Chairman of Taishan Insurance.
The two firms said the deal will enhance Taishan’s market offering as China’s financial services sector continues to open up. Incorporated in 2011, the Shandong-based Taishan Insurance provides insurance products, services and solutions to customers throughout China. In May 2020, Fitch officially confirmed BBB+ rating for Taishan Insurance with stable outlook, which ranks top among Chinese domestic insurance companies of similar type and size.
Ergo added: “For nearly two decades, ERGO Group has made China an increasingly important part of its business strategy. As early as 2005, ERGO Group launched its travel assistance and health TPA service company in China, and in 2013, it established ERGO China Life, its life insurance Joint Venture with Shandong State-owned Asset Investment Holdings Co, Ltd. ERGO Group accelerated its investment in China in 2019 by establishing its regional headquarters, ERGO China, which manages its existing activities and builds new business initiatives by launching a partnership with Great Wall Motors to provide the customers with state-of-the-art solutions powered by big data technology.”
This transaction is subject to the approval by relevant authorities.