The Paris-headquartered company said under the terms of the deal it has agreed to purchase 33% of Tian Ping Auto Insurance Company from its current shareholders for RMB 1.9bn (€237m, £200m) and to subscribe to a dedicated capital increase for RMB 2bn “to support future growth”.
The deal is subject to regulatory approval.
Axa and Tian Ping’s current shareholders will jointly control Tian Ping and Axa’s existing Chinese property & casualty operations are expected to be integrated within the new joint venture.
Henri de Castries, chairman and chief executive of AXA said: “This acquisition provides AXA with unique direct distribution capabilities in the fast-growing P&C insurance market in China, thanks to Tian Ping’s extensive knowledge of the domestic market. It further strengthens the profile of AXA’s global P&C franchise and is another stepping stone towards our ambition to accelerate further in high growth markets.”
Tian Ping was established in December 2004, with headquarters in the East Chinese city of Shanghai. It was the first insurance company in China to specialise in motor insurance and one of the first to receive a direct distribution license.
