ZURICH, Nov. 25, 2019 /PRNewswire/ -- Chubb Limited (NYSE: CB) today announced that it has agreed to purchase an additional 15.3% of Huatai Insurance Group Company Limited. Upon completion of the share purchases, Chubb is expected to own 46.2% of Huatai Insurance Group. Last week, the China Banking and Insurance Regulatory Commission (CBIRC) approved other unrelated share purchases previously agreed to that upon closing bring Chubb's stake to 30.9%.
Huatai Insurance Group is the holding company of Huatai P&C Insurance Company, Huatai Life Insurance Company and Huatai Asset Management Company, among other subsidiaries. Huatai Group's insurance operations have more than 600 branches and 11 million customers.
Chubb will purchase the shares from the Inner Mongolia Junzheng Energy and Chemical Group Co., Ltd. and one of its wholly owned subsidiaries. The parties have also agreed to the intended terms of a subsequent purchase of an additional 7.1% of the company, contingent upon the completion of the first purchase. The transactions are subject to regulatory approvals and other important conditions.
"Earlier this year, following approval from the CBIRC, we increased our ownership in Huatai Insurance Group, which became the first domestic Chinese financial services holding company to convert to a Sino-foreign equity joint venture. The agreement we are announcing today is another important milestone toward our goal of majority and beyond ownership in Huatai," said Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb. "We are committed to supporting Huatai as a long-term strategic shareholder and we have great confidence in the long-term potential of the Chinese insurance market. We are builders at Chubb, and our increasing stake in Huatai is an opportunity to build a great Chinese insurance company that will meet the growing protection needs of Chinese consumers and businesses."
About Chubb in China
Chubb's history in China dates back to 1792 when a legacy company – the Insurance Company of North America (INA) – began providing protection to the pioneers of trade between the United States and China. In 1897, INA appointed an agent in Shanghai and started to officially conduct business in China. Today, Chubb is proud to have participated in over 200 years of U.S.-China relations and views China as one of its most significant long-term opportunities. The company looks forward to expanding its presence in China and making further contributions to the development of its insurance industry.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: www.chubb.com.
Cautionary Statement Regarding Forward-Looking Statements
Forward-looking statements made in this press release, such as statements regarding Chubb's investment in Huatai and related share purchases, reflect the company's current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from as set forth in these statements, including receipt of required shareholder and regulatory approvals, general economic and political conditions, regulatory and legal developments, and required actions by the respective parties to share purchase agreements. Additional information regarding factors that could cause differences from these forward-looking statements appears in the company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.
SOURCE Chubb Limited