Assicurazioni Generali SpA's bid to acquire the entire shareholding of its Chinese property and casualty insurance business was the largest deal in the Asia-Pacific insurance market in the first quarter based on transaction value, according to an analysis by S&P Global Market Intelligence.

The Italian insurer agreed to acquire a 51% stake in Generali China Insurance Co. Ltd. from CNPC Capital for about 774 million yuan. The transaction will make Generali the first foreign player to obtain a controlling stake in a property and casualty insurer from a single state-owned entity in China through a mandatory public auction process.

Pepper Money Ltd.'s call option exercise to purchase the remaining 35% stake it does not already own in Australia-based Stratton Finance Pty. Ltd. was the second-largest deal during the period with a value of $27.4 million. The transaction, which was completed March 28, follows Pepper Money's acquisition of a 65% interest in Stratton Finance in July 2022.

The pending acquisition of Beijing Nova Insurance Services Ltd.'s entire shareholding by Nova Insurance Consultants Ltd. for a total cash consideration of 143 million yuan rounded out the top three. Beijing Nova, formerly known as Beijing New World Insurance Brokers Ltd., will become an indirect wholly owned subsidiary of FSE Lifestyle Services Ltd. following the transaction.

Southeast Asia leads the way

Southeast Asia was the most active area in the region with six of the 21 deals seen during the first quarter.

These transactions included FWD Group Holdings Ltd.'s acquisition of an additional 21% stake in FWD Takaful Bhd., which raises its total shareholding in the Malaysian company to 70%. FWD group became the majority shareholder of FWD Takaful with this transaction, while JAB Capital Bhd. is no longer a shareholder.

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Other deals included Bridge Specialty's pending acquisition of Acorn International Network Pte. Ltd. in Singapore; Pacific Prime Insurance Brokers Ltd.'s full acquisition of MIT Insurance Brokers Sdn Bhd. in Malaysia; Sunday Ins Co. Ltd.'s purchase of a 99% stake in PT KSK Insurance Indonesia; Roojai Co. Ltd.'s acquisition of PT Lifepal Technologies Indonesia; as well as the purchase of a 9.83% stake in Vietnam-based Saigon - Hanoi Insurance Corp. by an undisclosed buyer.

Five of the 30 deals announced in the first quarter of 2023 involved Southeast Asian companies.

Vanuatu's million dollar deal

South Korea was home to the fourth-largest transaction during the period: GeneXon Co. Ltd.'s $7.5 million pending acquisition by Chungho ICT Co. Ltd. The deal, which was announced March 26, is expected to close May 10.

Tian Ruixiang Holdings Ltd., through its TRX HongKong Investment Ltd. subsidiary, entered into a sale and purchase agreement to acquire Peak Consulting Services Ltd. from Yuefu Co. Ltd. in February for a total consideration of $1.5 million. The transaction is part of Tian Ruixiang's bid to expand into the Hong Kong insurance brokerage market.

Vanuatu also registered a million-dollar deal after Tower Ltd. entered in to a conditional agreement to sell its Tower Insurance (Vanuatu) Ltd. subsidiary to Capital Insurance Group Ltd. for about NZ$1.6 million during the quarter. The sale, which is expected to be completed in the first half of 2024, is part of Tower's efforts to streamline its operations in the Pacific. It follows the sale of Tower's Papua New Guinea business and the sale of its Solomon Islands business to Trans Pacific Assurance Ltd., which completed in 2023 and 2024, respectively.

Other noteworthy transactions during the period include Howden Group Holdings Ltd.'s acquisition of Australia-based Silks Insurance Pty. Ltd. in January, as well as Arthur J. Gallagher & Co. (Aus) Ltd.'s merger deal with Ansin Insurance Brokers, and Toyota Tsusho Insurance Partners Corp.'s pending acquisition of JTEKT Service Co. Ltd.'s insurance agency business in February.