XL Reinsurance (China) has announced that Catlin Re Switzerland will become its sole shareholder following the signing of a share transfer agreement last month.
The deal is priced at $20m.
At present, the XL Re (China) is held 51% by XL Reinsurance America and 49% by XL Insurance.
The sale is subject to the approval of the CBIRC and the completion of the necessary formalities.
XL Re (China) is the first reinsurance subsidiary domiciled in Shanghai and the first foreign-owned reinsurance subsidiary in China. It came into being when XL Insurance (China), AXA’s China subsidiary, received approval from the CBIRC to change its business licence from insurance to reinsurance last July.
As the Paris-headquartered global insurance group AXA is the ultimate controller of Catlin Re Switzerland, the ultimate controlling shareholder of XL Re (China) remains unchanged after the completion of the sale. In 2018, XL Group was acquired by AXA and became a fully-owned subsidiary of AXA. In 2015, XL Group acquired the Catlin Group.
According to data from the Insurance Association of China, there are currently 13 reinsurers in mainland China, including five Chinese-funded institutions and eight onshore foreign-funded entities. While XL Re (China) is a locally incorporated company, the other seven onshore foreign reinsurance institutions are all branches of foreign reinsurers.