As per the agreement, Generali will acquire a 30% stake in Guotai AMC for E100 million
Italian insurer Assicurazioni Generali S.p.A. has formulated a long-term strategic alliance with Shanghai-based asset management firm, Guotai AMC for pension business expansion in China – reported in Trading Markets.
The agreement was signed at the ‘Group of Eight’ summit in Rome earlier in July, in the presence of Chinese President Hu Jintao and Italian Prime Minister Silvio Berlusconi.
As per the agreement, Generali will acquire a 30% stake in Guotai AMC for E100 million ($140 million), depending on Chinese regulatory approval. The Italian insurer is expected to offer additional pension schemes to enterprises through the alliance.
Generali and Guotai have also decided to co-operate in sharing expertise and best practices on technical and knowledge-based issues, such as pension product design, risk management, training and market research.
According to Generali, the deal with Guotai AMC will allow the insurer to expand its pension offering to the ‘second pillar’ supplementary pension plans for enterprises that have been recently introduced in China.