Two China state-owned companies to acquire Asia Capital Re

Two investment corporations owned by the Chinese state will acquire ACR Capital Holdings, the holding company of Asia Capital Re, as they look to increase their investments in the reinsurance industry and also developing Shenzhen Qianhai into a regional reinsurance hub.

Shenzhen Qianhai Financial Holdings (QFH) and Shenzhen Investment Holdings (SIHC) have entered into a definitive agreement with ACR Capital Holdings’ (ACR) shareholders to acquire 100 percent of ACR.

Both are 100 percent state-owned investment corporations based in Shenzhen, China.

Hans-Peter Gerhardt, group chief executive of ACR, 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. A larger, stronger ACR will be well positioned to pursue profitable growth opportunities, with an enhanced ability to serve its clients with a broader suite of products across a wider range of channels and geographies. The introduction of QFH and SIHC as long-term, strategic owners opens up a new and exciting chapter for ACR.”

Li Qiang, chairman of QFH, added: “On the one hand, QFH would utilise ACR’s platform and professional advantages, consolidating global insurance capital or resources and developing professional insurance products and services, to provide comprehensive risk management solutions for the "Going Global" Chinese enterprises.

“On the other hand, we would open up the Qianhai–Asia–International insurance industry chain to form a strong agglomeration and demonstration effect, and make Qianhai the national centre for reinsurance.”

Li added: "We look forward to utilising ACR’s leading pan-Asian platform and professional underwriting capacity to promote other domestic/overseas reinsurance business and the joint development of financial services. At the same time, we would promote business synergy between ACR and Qianhai Re to achieve cohesive development of the two companies.”

Peng Haibin, chairman of SIHC, commented: “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.”