August 17, 2011
 
The Clyde & Co corporate insurance team in Shanghai advised Insurance Australia Group (IAG), one of Australasia’s largest publicly-listed P&C insurers on its recently announced acquisition of a 20% stake in Chinese insurer Bohai Insurance for
approximately A$100m. Bohai Insurance, predominantly a motor insurer, was launched in 2005 and has annualised gross written premiums in excess of A$200m, selling directly to customers as well as through a network of agents.
 
Michael Cripps, a corporate insurance partner at Clyde & Co in Shanghai, who advised on the deal, says: “We are delighted to have assisted IAG on this purchase, one of the largest transactions in the Chinese insurance market in the last few years.
 
"While the period between 2004 and 2007 was a time of significant corporate activity in China, this slowed considerably during the global recession. However, we believe that this deal is an indication that the tide may be turning, and that the market expects increasing activity going into 2012.
 
"There is no doubt that China remains a top priority for insurers both inside and outside the region who are looking for growth opportunities, and this is matched by the enthusiasm of both insurers and regulators in the PRC who are encouraging foreign investment, particularly in the area of general insurance."
 
"We are working with a number of insurers who are looking at either entering the market, increasing their existing market share or improving profitability and sharing our knowledge of both global insurance and the local market to see how they can achieve their aims."
 
 

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