Swiss Re buys stake in New China Life

Swiss Re, a global re-insurer, announced on Thursday that it has entered into a transaction with Zurich Insurance Co Ltd to acquire a 4.9 percent stake in New China Life Insurance Co Ltd.

Headquartered in Beijing, New China Life is the third-largest life insurer in China in terms of gross premium.

Swiss Re is acquiring directly from Zurich Insurance Company 152.9 million New China Life H shares (which are listed on the Stock Exchange of Hong Kong). representing 4.9 percent of the total issued share capital of New China Life (which includes both H shares listed in Hong Kong and A shares listed in Shanghai). The total value of the transaction is HK$3.82 billion ($493 million).

"China is the fifth-largest life insurance market in the world, but its penetration is still relatively low. Investing in New China Life enables us to tap into this growth potential," said John Dacey, Swiss Re's group chief strategy officer.

"It also reaffirms Swiss Re's commitment to the high growth markets and its strategy of making investments in leading insurance franchises."