HONG KONG--Zurich Insurance Co. said it has raised US$943
million by selling all its shares in New China Life Insurance Co.,
exiting its investment in the Chinese insurer.
The Swiss insurer, a subsidiary of Zurich Insurance Group, sold
292.5 million shares, or 9.4% of the issued share capital of New
China Life, at 25 Hong Kong dollars ($3.23) each, representing a
7.7% discount to the Chinese insurer's Wednesday's closing price of
HK$27.10.
Zurich said it sold 152.9 million shares, or 52.3% of the
shares, to Zurich-based Swiss Re. Swiss Re will own a 4.9% stake in
New China Life.
Zurich said the sale reflects Zurich's desire to manage its
financial exposure to a large single holding of shares and it
intends to reinvest the proceeds of the sale into investments in
Asia.
Zurich has more than tripled its initial investment in New China
Life, with the share sales totaling US$1.73 billion.
The company also raised $283 million by selling New China Life
shares in July.
Before this year's sales, Zurich sold a 5% stake in New China
Life for US$500 million in the second quarter of 2011, reducing its
interest to 15% from 20%. Zurich had invested about US$551 million
in the Chinese insurer since 2000, according to a 2011
statement.
Goldman Sachs Group Inc., HSBC Holdings PLC and UBS AG handled
the transaction, according to term sheets and a person familiar
with the situation.
Write to Prudence Ho at prudence.ho@wsj.com
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