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Nov. 19 (NBD) -- French multinational insurance firm AXA is currently in talks to buy the remaining 50 percent stake in AXA Tianping Property & Casualty Insurance Company Limited (AXA Tianping), according to quanshangcn, the official WeChat account of news outlet Securities Times. 

The deal under discussion is estimated to be valued at around 4 billion yuan (577.7 million U.S. dollars). If it was nailed down and finally approved, it would be the largest foreign equity investment in China's insurance market after the country's further opening-up of its financial sector this year.

Formed through a merger of Tian Ping Auto Insurance Co Ltd and AXA's wholly-owned property insurance subsidiary in China, Shanghai-based AXA Tianping is currently the largest foreign-funded property insurer in China, and offers insurance services such as family property insurance, cargo transportation insurance, liability insurance, healthcare insurance, and compulsory insurance for vehicle traffic accident liability. 

AXA is the biggest shareholder of AXA Tianping with a 50 percent stake. At present, the insurance giant is holding discussions with the five other shareholders of the Shanghai-based joint venture, looking to buy the remaining 50 percent stake. 

AXA Tianping enjoyed steady growth in the past four years. Data from the China Banking and Insurance Regulatory Commission shows that the insurance company netted approximately 4.5 billion yuan (649.9 million U.S. dollars) in original premium income in the first nine months of this year, ranking top among foreign-funded property insurance firms in China. 

Taking full control of AXA Tianping will strengthen AXA's presence in the Chinese insurance market. In addition to the investment in AXA Tianping, the French multinational holds a 27.5 percent stake in ICBC-AXA Life Insurance Co Ltd.

China's insurance sector has been growing vigorously. 

European leading insurer Allianz said in a report Insurance Markets in 2017 released in April this year that China is expected to become the world's largest insurance market by 2028.

With 1.1 trillion euros (1.2 trillion U.S. dollars) or just over 30 percent of global premium income, the U.S. was the largest insurance market worldwide last year. China came second with around 420 billion euros (476.5 billion U.S. dollars), the report showed. 

AXA's new move is just an epitome of foreign companies' strong push into the promising market. 

Reports emerged in May that Allianz was planning to set up a wholly-owned holding company in Shanghai to oversee all its life and non-life business in mainland China, and the company was in talks with the Chinese authorities to advance its growth agenda in the country. 

Insurance industry veteran Maurice R. Greenberg is also buoyant about the Chinese insurance market. Global insurance and financial services organization Starr Companies, of which Mr. Greenberg serves as Chairman and Chief Executive Officer, intends to increase its holdings in Starr Property & Casualty Insurance (China) Company Limited.  

Email: lansuying@nbd.com.cn