Swiss Re is interested in investing in China. The target of its interest is said to be equally keen on buying a stake in the Zurich-based reinsurance giant.
China Pacific Insurance (CPIC) considers buying as much as $2 billion worth of shares in Swiss Re, according to a report by «Bloomberg». At the same time, the Swiss reinsurer is mulling an investment worth between $500 million and $1 billion in the Chinese insurer.
Following the reports in the media, the Swiss company issued a statement: «Swiss Re confirms that it has been exploring a potential investment opportunity in a possible primary offering of CPIC's securities. No definitive agreement has been entered into between Swiss Re and CPIC.»
Swiss Re added that it had «no current intention» of issuing new shares or making treasury shares available to any potential investor.
Earlier Plans Came to Nothing
The possible transactions reminds of earlier plans that entailed a link-up between Swiss Re and Asian firms. In early 2018, Swiss Re was in talks with Softbank Group, which was interested in buying a minority stake in Swiss Re.
Nothing came of it. Almost exactly a year ago, Swiss Re was said to consider making an investment in state-controlled Chinese insurer Anbang, the No. 3 in the world’s second-largest economy.
China Pacific's European Bid
Whether or not the latest talks will turn into something more tangible seems far from a foregone conclusion. China Pacific in September said it plans to sell global depository receipts and list them on them on the London stock exchange, «Bloomberg» reported. The sale of the GDR will help the Chinese firm develop its overseas business.
Swiss Re didn’t say in the statement whether the talks with China Pacific were part of its plans to list the GDRs in London
