Insurance Australia Group (IAG) has agreed to acquire a 20% strategic interest in Bohai Property Insurance, a China-based general insurer, for a price of RMB687.5m (approximately A$100m).

As per the terms of the agreement, IAG will have board representation as well as senior management roles in key technical areas. Completion is expected in early calendar 2012 and remains subject to regulatory approval.

IAG managing director and CEO Mike Wilkins said once the partnership is complete, IAG will have a foothold in the two fastest growing economies in Asia and most populous countries in the world – China and India.

"Together with our established businesses in Malaysia and Thailand, this puts the Group’s Asia division well on track to meet its target of contributing 10% of IAG’s gross written premium by 2016, on a proportional basis," Wilkins added.

Bohai Insurance, headquartered in Tianjin, was founded in October 2005. It has 265 provincial and city-based branches and a network of agents, with around 3,000 employees.