Generali buys 51% Gci, becomes sole shareholder non-life company in China

Generali has signed an agreement to acquire 51 percent of Generali China Insurance Company (Gci) for about 99 million euros, becoming the sole shareholder of the Chinese non-life company.

This was announced in a note from the Trieste-based company, explaining that the agreement follows the public tender launched by Cnpc Capital, under which it will remain a partner in the joint ventures Generali China Life Insurance Company Limited, active in the life segment, and Generali China Asset Management Company.

As a result of the transaction, in line with its strategic plan, Generali estimates a negative impact on its Solvency Ratio of about 1 percentage point.

"The acquisition represents a long-term strategic investment to develop a wholly owned Non-Life business in China, allowing Generali to strengthen itself with an increasing share in the growing Chinese market," the note comments.

With the completion of the transaction, which is subject to regulatory approvals, Generali will become the first foreign operator to acquire a controlling interest in a non-life company from a single state-owned entity in China, exclusively through a mandatory public auction process.

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(Andrea Mandalà, editing Stefano Bernabei)