Generali Completes Acquisition of Full Ownership in Chinese Insurer

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Generali Secures Total Ownership of Generali China Insurance

Generali has successfully completed the acquisition of the remaining shares in its Chinese property and casualty insurer, Generali China Insurance Company Limited (GCI), thereby converting it into a wholly foreign-owned enterprise. This strategic move culminates a process initiated with a public auction announced by the China Beijing Equity Exchange towards the end of 2023.

The transaction, valued at roughly €99 million, elevates Generali’s stake in GCI from 49% to a full 100%, positioning the Italian insurance giant as the exclusive proprietor of the P&C unit. Previously, Generali operated GCI as a joint venture with CNPC Capital, a subsidiary of China National Petroleum Corporation. Notably, this marks the first instance of a foreign insurer acquiring complete control of a Chinese P&C company via a compulsory public auction.

With full command over GCI, Generali intends to seamlessly integrate the business into its global operations while rebranding it under the Generali name. Company executives assert that this acquisition aligns with Generali’s strategic priorities in Asia, allowing it to refine its offerings to meet the evolving demands of China’s insurance market.

Generali plans to expand its distribution network in China and develop insurance solutions that align with carbon neutrality objectives, including coverage for climate-related risks. Leveraging its European expertise, the company aims to introduce comparable eco-friendly products tailored to China’s regulatory and economic framework.

While this transaction is projected to impact Generali’s group-level solvency by an estimated negative one percentage point, the financial effect is deemed modest in relation to the group’s overall capital position.

Generali’s life insurance and asset management partnership with CNPC Capital, Generali China Life Insurance Company Limited, remains unaffected by this acquisition. Established in 2002, the joint venture continues to thrive, with gross written premiums surpassing €3 billion as of 2022.

Recently, Generali disclosed its financial results for 2024, revealing growth across all major business domains, including life, property and casualty, and asset management. The group’s total gross written premiums rose to €95.2 billion, marking a 14.9% increase from the previous year, driven by advancements in both the life and non-life segments.

The group’s adjusted net income increased to €3.77 billion, compared to €3.58 billion in 2023. Operating profit reached €7.3 billion, an 8.2% rise, fueled by improved insurance underwriting margins and robust investment operations.

In property and casualty insurance, Generali reported an operating result of €3.05 billion, a 5.1% enhancement from the prior year. The combined ratio remained stable at 94.0%. The insurer attributed this success to advancements in claims management and a disciplined approach to underwriting.