The deal was first announced in April last year, when Axa bought 33% of Tian Ping from its current shareholders for RMB1.9bn (€240m). The company has now increased this stake to 50%, having subscribed to a capital increase of RMB2bn to support future growth at the time of the original purchase.
At the time of the deal, Henri de Castries, chairman and chief executive of the Paris-headquartered company said the acquisition would provide Axa with “unique direct distribution capabilities in the fast-growing P&C insurance market in China, thanks to Tian Ping’s extensive knowledge of the domestic market”.
Tian Ping was established in December 2004, with headquarters in the East Chinese city of Shanghai. It was the first insurance company in China to specialise in motor insurance and one of the first to receive a direct distribution license.