Chubb received approval from the China Banking and Insurance Regulatory Commission (CBIRC) on 18 November 2022, to increase its stake in Huatai Insurance Group from 47.3% to 83.2%. The acquisition will allow Chubb to further consolidate its life insurance business in the Asia-Pacific (APAC) region and give access to Huatai’s 19 million customer base and a network of 400 branches and 23,000 agents, spread across 20 out of the 31 provinces in China, says GlobalData, a leading data and analytics company.

According to GlobalData’s Insurance Database, after the deal, the combined market share of Chubb and Huatai in China that accounted for 0.18% and 0.14% in 2021, respectively, will significantly improve Chubb’s ranking among foreign insurers operating in China from the 17^th position in 2021.

Shabbir Ansari, Senior Insurance Analyst at GlobalData, comments: “The Huatai deal will give Chubb access to life insurance business in China, as it only operated in property and casualty business prior to the acquisition. China is the second largest life insurance market globally, in terms of premiums, after the US, and is forecast to grow at a compound annual growth rate (CAGR) of 6.56% over 2021-26.”

The Huatai deal was followed by Chubb’s acquisition of Cigna Accident and Health (A&H) and Life Insurance Business on 1 July 2022. Cigna has operations in six Asian markets – South Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia. The Cigna deal has doubled Chubb’s life insurance premium as per Q3 2022 results.

Ansari continues: “Chubb’s life insurance business is skewed towards the APAC region, which contributes nearly 60% of its life insurance business. The Huatai deal will further strengthen Chubb’s footprint in the region and increase its share from China, which accounted for 18.6% of Chubb’s business in 2021.”

The diverse business portfolio of Huatai, ranging from property & casualty to life insurance will support Chubb’s expansion into both personal and commercial lines.

Ansari concludes: “The addition of Huatai Insurance will boost Chubb’s retail business and support in achieving product, customer, and geographical diversification. A fast-growing affluent population and the aging demography in China will support Chubb to expand its business into life insurance and asset management services.”