In December 2005, Carlyle and Prudential paid $US400 million for their stake in CPIC's life insurance arm which they agreed late last week to convert to a 19.9% stake in the parent company. A foreign investor can hold up to 20% of a mainland financial company with a total overseas stake capped at 25% under China’s foreign ownership regime.
US Firm Strikes a Deal with Chinese Insurer, Leaving IAG Out
Private equity firm Carlyle Group, partnered by Prudential Financial, has struck a deal with China Pacific Insurance Company (CPIC), the country’s third largest insurer, with a $US1 billion float. An agreement between the US companies last week to convert their 25% holding in CPIC's subsidiary life insurance arm back into a stake in the parent company has helped to unravel three years of negotiations by Australian home and auto insurer IAG to buy 25% of CPIC's other subsidiary general insurer, China Pacific Property Insurance (CPPI).
Published on June 4, 2007
Are you a retail Agent Looking for a Quote?