Fosun considers takeover of USD10b insurer Ageas

Fosun International Ltd., the Chinese group backed by billionaire Guo Guangchang, is considering an offer for all or parts of Belgian insurer Ageas in what could be its boldest move to expand its international footprint, people familiar with the matter said.

Shanghai-based Fosun is talking to advisers about alternatives including teaming up with a partner to split the Brussels-based company or increasing its current stake, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and Fosun may decide against pursuing a deal, they said.

Shares of Ageas jumped to their highest in almost a decade yesterday, giving the company a market value of about 9.3 billion euros (USD10.9 billion). The country’s biggest life insurance provider this month won court backing for an amended 1.31 billion-euro settlement with some former investors in its predecessor, Fortis, helping bring to a close a battle with roots in the global financial crisis and clearing the decks for a takeover. Still, a potential deal could draw scrutiny from regulators globally because of Ageas’s prominent role in Belgium’s financial sector and its far-flung operations.

“Now that Ageas is Fortis free, it could be a compelling target for a Chinese conglomerate willing to expand its activities,” according to Jason Kalamboussis, an analyst at KBC Securities. “Nevertheless, given its positions as number one in life insurance in Belgium and number two in non- life, there could be some political push back to an outright takeover.”

Fosun has continued to expand its international business empire amid a Chinese crackdown on overseas deals in some industries that’s forced other conglomerates like Anbang Insurance Group Co. to shed assets. This year, Fosun announced deals for Brazilian brokerage Guide Investimentos and French fashion house Lanvin.

Its biggest overseas forays abroad have been in insurance. The company bought control of Portugal-based Caixa Geral de Depositos SA’s insurance business in a roughly 1.6 billion-euro deal in 2014. It also acquired U.S.-based Ironshore Inc. in 2015 for $2.1 billion and then sold it less than two years later.

Fosun already holds about 3 percent of Ageas, though Ping An Insurance (Group) Co. is the largest shareholder with a 5 percent stake, according to filings. Shares of the Belgian company rose 5.1 percent to 45.90 euros in Brussels, after earlier trading up to 46.53 euros, its highest since October 2008.

In addition to operations across Europe, Ageas sells products in China, Malaysia, India, Thailand, the Philippines, Laos, Cambodia, Singapore and Vietnam. It’s also a minority partner in a joint venture with China Taiping Insurance Holdings Co. Bloomberg

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