Insurer Chubb Ltd said on Monday it could buy an additional 22.4% stake in Chinese insurer Huatai Insurance Group Co Ltd for 10.8 billion yuan ($1.53 billion).
Chubb, which already holds nearly 27% stake in Huatai, said it would first buy 15.1% and then an additional 7.1% stake based on the completion of the first contingent.
In March, Chubb raised its stake in Huatai to 26.2%, following approval from China Banking and Insurance Regulatory Commission.
“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,” said Evan Greenberg, Chief Executive Officer of Chubb.
Chubb will buy Huatai shares from its shareholder’s Chinese chemicals maker Inner Mongolia Junzheng Energy and Chemical Group Co Ltd and one of its wholly-owned subsidiaries.
($1 = 7.0389 Chinese yuan renminbi)
(Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli)
Edited for ILSTV