Munich Re’s ERGO to buy 25% stake in China-based Taishan Insurance
Germany-based ERGO Group, a subsidiary of Munich Re, has agreed to acquire a 24.9% stake in Taishan Property & Casualty Insurance (Taishan Insurance) in a move to enter into the Chinese property and casualty (P&C) market.
Financial terms of the deal were not disclosed by ERGO Group, which will execute it through its subsidiary ERGO Versicherung. The closing of the deal will be subject to approval from the relevant bodies.
Based in Shandong, Taishan Insurance serves throughout China through 11 provincial branches, 42 center sub-branches, along with 119 sub-branches and marketing and service offices.
Taishan Insurance offers property insurance, short-term health insurance, liability insurance, credit and guarantee insurance, and accident insurance, reinsurance, and insurance investment among other services as approved by the China Banking and Insurance Regulatory Commission (CBIRC). The company has two subsidiaries – Taisheng Insurance Agency and Taishan Private Capital Management.
ERGO Group said that the transaction will help in enhancing Taishan Insurance’s market offering in line with the opening up of the Chinese financial services sector.
Zhu Huajian – Taishan Insurance Chairman said: “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.”
ERGO Group has been increasing its presence in China for nearly 20 years. In 2019, the company set up its regional headquarters in the form of ERGO China for managing its ongoing activities in China and for developing new business initiatives. The German insurance group in 2013 created a life insurance joint venture with Shandong State-owned Asset Investment under the name ERGO China Life.
Jürgen Schmitz – CEO of ERGO China said: “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.”