Swiss Re has confirmed that it is exploring buying a stake in China Pacific Insurance (CPIC). It follows media reports of a possible investment by Swiss Re in CPIC, which in turn will buy a minority stake in the Swiss reinsurer
However, no definitive agreement has been entered into between Swiss Re and CPIC. Any securities offering by CPIC remains subject to various contingencies, including CPIC’s decision to proceed with any such offering.
Separately, Swiss Re said it has no current intention of issuing new shares or making treasury shares available to any potential investor.
According to a Bloomberg report citing people familiar with the matter, CPIC is in talks to invest at least $2bn for a stake in Swiss Re as it seeks to build partnerships overseas.
At the same time, Swiss Re is said to spend $500m to $1bn for a minority stake in CPIC as part of the deal, the people said, asking not to be identified. It was said that discussions are at an advanced stage and an agreement may be reached soon even though talks could still be delayed or fall apart.
Foraying into Asia
In Asia, Swiss Re is a minority shareholder in Hong Kong-headquartered insurer FWD Group after it entered into an agreement to invest up to $425m in 2013.
Seeking to expand further into the growing Asian insurance market, Swiss Re is also said to have held discussions with Chinese authorities last month about an investment in embattled insurer Anbang Insurance Group according to the Bloomberg report.
However, the reinsurance giant was previously unsuccessful in its proposed deal with Japan’s SoftBank Group about a potential minority investment by SoftBank in Swiss Re. In mid-2018, talks between both parties collapsed after nearly four months of deliberations about how the investment will work out.