Zurich Insurance sells out of New China Life

Half of the $943 million block trade is taken up by Swiss Re, giving it a 9.4% stake in the company at a time when analysts say the Chinese life insurance sector is undergoing a positive re-rating.

Zurich Insurance Group has sold its remaining 9.4% stake in New China Life Insurance, taking advantage of the sharp spike in the share price in the past five days after China flagged a set of economic reforms that is seen as beneficial to the domestic insurance sector.

The deal, launched and completed after the Hong Kong market closed on Wednesday, raised HK$7.31 billion $943 million, but 52.3% of that was taken up by Swiss Re. The Swiss re-insurance specialist had agreed to buy the shares directly from Zurich Insurance ahead of the launch and acted as an anchor for the placement, effectively reducing the number of shares available...

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