On 16 August, Sanpower Group, which has been active in both the domestic and international capital markets over the past two years, announced that it has reached a strategic equity partnership agreement with Liberty Mutual Insurance Company and that it has received a 51% controlling interest in Liberty Insurance Co., Ltd., a wholly-owned subsidiary of the former. Liberty Mutual Insurance Company will continue to hold a 49% minority share in the joint venture. This agreement will require regulatory approval, including from the China Insurance Regulatory Commission. After taking over the operation and management of Liberty Insurance, Sanpower Group will make use of its rich resources in the local industry in synergy with the main business of Liberty Insurance to achieve stronger and faster growth.

Liberty Mutual Insurance Company was established in 1912. It is the fifth biggest property insurance company in the USA and the sixth biggest in the world. It is headquartered in Boston, Massachusetts and has more than 800 organizations and over 55000 employees throughout the globe. In 2003, Liberty Mutual Insurance Company established a branch office in Chongqing, China, becoming the only foreign-funded property insurance company in Chongqing. In 2007, with the approval of the China Insurance Regulatory Commission, the branch office was formally upgraded to a wholly-owned subsidiary called Liberty Insurance Co., Ltd. Since 2009, Liberty Insurance has further established branch offices in Beijing, Zhejiang, Guangdong, Shandong and Sichuan. As of 2015, Liberty Insurance’s written premium ranked fourth among foreign-funded property insurance companies in China.

Sanpower Group was established in 1993. By 2015, its total assets and annual sales had both exceeded RMB 100 billion. It is a large, privately-owned enterprise characterized by its information-based approach and strengths in modern services. With big data at its core, Sanpower Group has established itself in the three industries of finance, health and consumption and is developing an industry ecosystem based on synergic development within the system. It strives to become a world-class enterprise building on Chinese characteristics and sustainable development. Sanpower Group owns several listed companies, including Hiteker (600122.SH), Nanjing Cenbest (600682.SH), IDT International (0167.HK), Jinpeng Yuankang (New OTC Market 430606) and Fujitsu Electronics (New OTC Market 837438), as well as many key domestic and foreign firms, including Hisap, Funtalk Telecommunications, Hirealty, Guangzhou Jinpeng, House of Fraser in the UK, Brookstone in the USA and Natali in Israel. In addition, it has more than one hundred subsidiaries and controlled enterprises and over 90,000 employees across the world, with 30,000 employees overseas. Over many years of growth, Sanpower Group has continually nurtured a corporate culture centred on “positivity, introspection, balance” and “kindness, reasonability, insight”. It is committed to its company credo of creating value for clients and providing opportunities for employees. Together they shape the unique character and cohesion of the enterprise.

Sanpower Group owns many business units in the financial sector, including Internet finance, asset management, finance leasing, commercial factoring, insurance brokerage, prepay cards and third party payment services. Sanpower Group’s takeover of the majority share in Liberty Insurance’s property insurance business is a sign of the rapid development of its financial holding platform and the synergistic transformation of its overall business.

Yuan Yafei, Chairman of Sanpower Group, noted, “Liberty Mutual Insurance Company is one of the most renowned enterprises in the world. This strategic partnership will allow us to jointly promote the development of Liberty Mutual Insurance Company in China and at the same time, expand the distribution of Sanpower’s business in the financial sector and speed up the development of financial services. It could be said to be “win-win” for both parties.”

David Long, Chairman and Chief Executive of Liberty Mutual Insurance Company, said, “China has the second largest property insurance market in the world and as we see it, this market will only become more attractive and have greater growth opportunities in the future. Sanpower Group’s understanding of Chinese market, its market penetration, and in particular its extensive sales network, will greatly enhance the competitiveness of Liberty in the local Chinese market. I want to express my gratitude to our Chinese employees for their work in facilitating this collaboration.”

Source: http://3g.1caixin.com.cn/bond/34147242.html