Switzerland’s multi-line insurance provider Zurich Insurance Group is set to dispose of its remaining 9.4% stake in New China Life Insurance (NCI) for $943m (£584.7m), to diversify its Asian operations.
Zurich plans to reinvest the proceeds of the sale into investments in Asia, so that it could maintain its exposure to Asian markets in a balanced way, benefiting from diversification of its equity portfolio.
The Swiss insurer said that it will sell its 292.5 million shares in NCI, at a fixed price of HK$25 (nearly $3.23) per share, which is equivalent to a 7.7% discount to the company's closing price on 20 November.
The sale is being carried out by way of a block trade conducted on the Hong Kong Stock Exchange.
Zurich will sell 52.3% of its 292.5 million shares in NCI to Swiss Re for $493m, while remaining 47.7% to investors procured by international investment banks (the book runners).
Zurich Asia-Pacific, Middle East and Africa chairman Geoff Riddell said, "Zurich is very optimistic about the China insurance market and we remain committed to further developing our presence in China and evaluating potential opportunities as they arise."
Most recently, media sources reported that Zurich Insurance is planning to scrap all of its 700 life insurance agents in Hong Kong by the end of the year, as its focuses to sell insurance products from agents to brokers and advisers.
