The French insurer Axa takes control of the Chinese company

The French company Axa bought 50% of the Chinese company Axa Tianping that it did not already have, in a contract of 584 million euros strengthening its position in one of the largest insurance markets and more dynamic world.

Foreign insurers want to strengthen their presence in China, dominated by local companies such as China Life and Ping An. This announcement comes one day after German Allianz announced the creation of a 100% holding company in the country. .

According to Axa, the Axa Tianping agreement has made it the first foreign insurer to hold 100% of one of the 20 largest property and casualty insurance companies in China.

"Axa Tianping represents a unique platform for Axa to fully capture the significant growth potential of the property and casualty insurance and health insurance markets in China," said General Manager Thomas. Buberl.

Restrictions on ownership in some parts of the market – such as life insurance – have forced these companies to operate through joint ventures.

Prudential UK, for example, has a growing business in the country in partnership with Citic, an investment company. The only exception to this rule is AIA, the Hong Kong-based life insurer, which has had its own license in China since 1992, when it was part of AIG.

However, the Chinese government has indicated over the past year that it is willing to relax the restrictions on property.

German Allianz announced Sunday that it has received approval from the Banking and Insurance Regulatory Commission of China to create an insurance holding company in China.

Allianz said the new company would give it more "strategic flexibility to expand investment and growth in China".

George Sartorel, regional director of Allianz for the Asia-Pacific region, said: "China is at the heart of our growth strategy for Asia."

In 2017, Axa Tianping ranked 15th among property and casualty insurers in China with 1 billion euros in gross written premiums, said Axa.

The French insurer has expanded into the property and casualty business, notably via the controversial acquisition of the Bermuda XL group for 12.4 billion euros earlier this year.

Both companies are expected to update their strategies on the market during investor day later this week.