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China: Shenzhen investors buy Asia Capital Re

Source: Asia Insurance Review | Nov 2016

Shenzhen Qianhai Financial Holdings (QFH) and Shenzhen Investment Holdings (SIHC) are acquiring 100% of Singapore-based ACR Capital Holdings, which is the parent company of Asia Capital Re.
   In a statement, ACR said that its major shareholders, 3i Group (and affiliates), Khazanah Nasional, Temasek Holdings and Marubeni Corporation, have agreed to terms for the 100% acquisition. The deal is said to be worth US$1 billion.
   The initiator of the acquisition of ACR, QFH is a wholly owned subsidiary and financial holding platform of the Qianhai Authority. It is also the main initiator of Qianhai Reinsurance Company (Qianhai Re), which was approved by the CIRC in March 2016 for preparatory establishment.
   SIHC is a state-owned capital investment corporation wholly owned by the Shenzhen State-owned Assets Supervision and Administration Commission. Its primary business is in finance, science park property development and strategic emerging industries. It is a significant shareholder in a number of leading financial institutions, including Ping An Insurance (Group).
On the proposed transaction, Group Chief Executive of ACR, Mr Hans-Peter Gerhardt, said: “China is ACR’s largest market and given QFH and SIHC’s strong focus on driving the development of China’s financial services sector, in particular, on developing Shenzhen Qianhai into a regional reinsurance hub, this new partnership presents ACR with great opportunities to contribute to the development of China’s reinsurance industry. Furthermore, they share ACR’s regional growth ambitions and have the ability to support ACR’s future growth trajectory.”
   Mr Li Qiang, Chairman of QFH, indicated that QFH was responding to the Chinese government’s call for enterprises to “Go Global”, implementing the strategic positioning of Qianhai as an opening-up pilot window, and through this transaction effectively enhancing the insurance industry’s ability to serve the country’s “One Belt, One Road” international outreach initiative.
   SIHC’s Chairman, Mr Peng Haibin, said: “ACR’s commitment to support Asia’s economies through the provision of sound, disciplined and effective reinsurance solutions resonates with our recognition of the reinsurance industry’s importance to China’s economic and social fabric. Our partnership will take ACR’s penetration of the Chinese market to the next level. In turn, the Chinese reinsurance sector will benefit from ACR’s unique DNA mix of Asian roots and experience with international exposure and expertise.”
   Asia Capital Re is Asia’s first reinsurance company with a focus on providing risk solutions to the pan-Asian region. Headquartered in Singapore, it has a regional presence in Hong Kong, Dubai, Taiwan, Japan, Korea, Vietnam and India.
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