Allianz Unit Buys 2% of China’s State-owned Pension Insurer

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Founded in 2022 by China’s largest banks, insurers and state investors, Guomin Pension was created to promote the country’s nascent private pension sector

An investment arm of German insurance titan Allianz is set to become the first foreign shareholder in China’s state-owned pension insurance behemoth, Guomin Pension & Insurance Co. Ltd. (国民养老保险公司), with an investment totaling 284 million yuan ($39 million).

Guomin Pension said Monday that it will issue 228 million new shares to Allianz Global Investors GmbH (AGI), representing 2% of the company’s equity. The investment is pending regulatory approval, Guomin Pension said in a statement.

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Allianz Global Investors GmbH invested 284 million yuan ($39 million) for a 2% stake in China's Guomin Pension & Insurance Co. Ltd.
The investment will raise Guomin Pension's registered capital to 11.4 billion yuan, pending regulatory approval.
Allianz’s investment aims to enhance Guomin Pension’s expertise in risk management, pension product design, and asset allocation, aligning with Allianz’s expanding presence in China's insurance market.

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Who’s Who

Guomin Pension & Insurance Co. Ltd.: Guomin Pension & Insurance Co. Ltd., founded in 2022 by China’s leading banks, insurers, and state investors, aims to promote China's private pension sector. It is set to issue 228 million new shares to Allianz Global Investors GmbH, marking Allianz as its first foreign shareholder. The investment will raise Guomin Pension's registered capital to 11.4 billion yuan. The company boasts a core solvency ratio above 800% as of Q1 2024.

Allianz Global Investors GmbH: Allianz Global Investors GmbH (AGI) is an investment arm of the German insurance giant Allianz. AGI has expanded its presence in China by becoming the first foreign shareholder in Guomin Pension & Insurance Co. Ltd., investing 284 million yuan ($39 million) for a 2% equity stake. The investment aims to bring advanced expertise in risk management and pension services to Guomin Pension and showcases Allianz's commitment to the Chinese market.

Citic Trust Co. Ltd.: The article briefly mentions Citic Trust Co. Ltd. as a partner of Allianz in China’s insurance market. However, it does not provide specific details about Citic Trust Co. Ltd. itself.

JD.com Inc.: JD.com Inc. is a Chinese e-commerce company that has established partnerships with Allianz in China's insurance market. Founded in 1998, JD.com is one of China's largest online retailers, known for its self-operated delivery network. The company offers a wide range of products, including electronics, clothing, and household items.

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What Happened When

2019：: Allianz became the first foreign insurer approved to run a wholly owned insurance business in China.

2021：: Allianz won the first license for a foreign insurer to set up an asset management subsidiary in China.

2022：: Guomin Pension was founded by China’s largest banks, insurers, and state investors.

August 2023：: Allianz won final approval to launch a 100%-owned fund unit in China to serve onshore retail and institutional investors and potentially pensioners.

By the first quarter of 2024：: Guomin Pension reported a core solvency ratio above 800%.

Monday, June 24, 2024：: Guomin Pension announced it will issue 228 million new shares to Allianz Global Investors GmbH (AGI), representing 2% of the company’s equity, pending regulatory approval.

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