Insurance Australia Group Ltd., Australia's largest auto and home insurer, ended three year talks to buy a stake in China Pacific Property Insurance Co., saying the company's parent resisted the move.
The Sydney-based firm said last year it had signed a memorandum of understanding with CPIC buy 24.9 percent of the unit of China Pacific Insurance (Group) Co. for as much as A$375 million (US$312 million).
Completion of the deal was delayed by changes and uncertainty within CPIC Property as it prepared for an initial public offering, IAG said in a statement.
This included the introduction of U.S. private equity shareholders at China Pacific Insurance which places new constraints on IAGâ€™s planned investment.
IAGâ€™s Chief Executive Officer, Michael Hawker says that while he is disappointed, the transaction for CPIC was not likely to proceed.
Our strategy for the Chinese market has been clear. We are a long-term strategic investor that aims to use our underwriting, risk and claims management expertise, as well as our track-record in general insurance, to create value for both our partner and our shareholders, Hawker said.
China Pacific Property handles about 12 percent of China's property and casualty insurance market.