Boston-based property and casualty insurer Liberty Mutual Insurance said it has entered into a joint venture with China-based private enterprise Sanpower Group Co. for its Chinese property and casualty insurance operations.
Liberty Mutual said Sanpower will hold a 51 percent controlling interest in the company and Liberty a 49 percent minority interest after completion of the transaction and approval by the appropriate regulatory authorities, including the China Insurance Regulatory Commission.
“China has the second largest property and casualty market in the world and continues to offer attractive growth opportunities to us,” said David H. Long, Liberty Mutual’s chairman and CEO. “Sanpower’s understanding of, and access to, broader Chinese markets, particularly through their extensive retail network, will significantly enhance the competitiveness of our joint operations in a market that remains dominated by local players.”
Liberty Mutual introduced its business to China in 1996 when it opened an office in Shanghai. It now has operations in six provinces: Chongqing, Beijing, Zhejiang, Guangdong, Shandong and Sichuan.
Sanpower Group is a Chinese conglomerate, operating businesses in the financial, health and retail industries. The company’s assets totaled $9.8 billion billion in 2015. Additionally, the company holds controlling stakes in more than 100 subsidiaries and employs 90,000.