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Ageas has announced that it has finalised an agreement with China Taiping Insurance Holdings (CITH), in order to subscribe to the capital increase of its wholly controlled subsidiary Taiping Pension Co., Ltd (TPP) for a total consideration of RMB 1,075 million (around €137 million).
After closing of the transaction, Ageas will reportedly hold 10% of the enlarged share capital of TPP.
From what we understand, the investment in TPP will allow Ageas to dive into the significant growth potential of the Chinese pension market, capitalising on the increasing demand for personal pension products in China.
At the same time, the investment will also help Ageas strengthen its presence in the largest growth market in Asia, as well as diversify its business offerings, and consolidate its long-standing strategic partnership with China Taiping.
Established in 2004 and headquartered in Shanghai, TPP stands as one of the largest pension insurance companies in China.
The company has two major business segments: pension, and employee benefits insurance.
In 2023, the organisation had €71 billion pension assets under management.
As previously mentioned, Ageas will acquire 10% of TPP’s enlarged share capital for a total consideration of RMB 1,075 million.
It has been confirmed that the corresponding amount will be paid in cash. The closing of the transaction is subject to fulfillment of conditions precedent and regulatory approvals. However, closing is expected to be in the first quarter of 2025.
Hans De Cuyper, CEO Ageas, commented: “We look forward to working alongside our long-standing partner to offer pension solutions to the Chinese people. As a country facing significant demographic challenges driven by an aging population, resulting in a rapidly increasing demand for retirement savings products, we view this as a very exciting opportunity to engage in a market that has been prioritised by the Government.
“We are convinced the development of the private pension market holds potential for growth and that it will be a positive contributor to the future development and performance of Ageas.”
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