Taishan Insurance has 11 provincial branches, 42 center sub-branches, and also 119 sub-branches and marketing and service offices.

20200608-ERGO-China-PC-800x450

ERGO Group agrees to invest in Taishan Insurance. (Credit: ERGO Group AG)

Munich Re’s ERGO Group is set to foray into the Chinese property and casualty (P&C) market by agreeing to acquire a stake of 24.9% in Taishan Property & Casualty Insurance (Taishan Insurance) for an undisclosed price.

The acquisition is being done by ERGO Group’s subsidiary ERGO Versicherung and will be subject to approval from relevant authorities.

Details about Taishan Insurance and its activities

Taishan Insurance, which is based in Shandong, is a P&C insurer that serves customers across China.

Incorporated in 2011, the company has a registered capital of CNY2.03bn ($290m) and is supervised directly by the Shandong Provincial State-Owned Assets Supervision and Administration Commission. The Chinese insurance company has 11 provincial branches, 42 center sub-branches, and also 119 sub-branches and marketing and service offices.

The business scope of the Chinese firm includes property insurance, liability insurance, short-term health insurance, credit and guarantee insurance, and accident insurance, reinsurance, insurance investment, and other services approved by the China Banking and Insurance Regulatory Commission (CBIRC).

In order to diversify its business scope, the company founded Taisheng Insurance Agency and Taishan Private Capital Management.

ERGO Group said that its involvement will boost Taishan Insurance’s market offering as the financial services sector in China continues to open up.

Taishan Insurance chairman Zhu Huajian said: “We are pleased to have ERGO Group become our strategic shareholder. We look forward to working closely with ERGO Group to explore new business opportunities and introduce new business models and technologies to our customers.”

Last year, ERGO Group established ERGO China, its regional headquarters, which is responsible for handling the German insurance group‘s existing activities in China and for building new business initiatives. Prior to that in 2013, ERGO Group established a life insurance joint venture called ERGO China Life with Shandong State-owned Asset Investment.

ERGO Group CEO and board of management chairman Markus Rieß said: “In our global portfolio, China holds a central role. Taishan Insurance is a dynamic and ambitious insurance company in the Chinese P&C market, which drives its business with great competence and determination.

“We are looking forward to building a strong partnership together and to bundling our strengths in this important market.”