IAG in talks to buy into China United and Dadi Insurance

Insurance Australia Group, the largest car and home insurer in Australia, is in talks to take a 20 per cent stake in China United Property Insurance, the mainland's fourth-largest property insurer, and China Continent Property & Casualty Insurance, a unit of the mainland's largest reinsurer, according to market sources.

A spokesman at China United said it was considering introducing investors to boost its share capital, but nothing had been decided yet.

A spokesman at China Continent, also known as Dadi Insurance, said he had no knowledge of any talks with Insurance Australia.

'IAG has said for some time that it is interested in expanding into international general insurance markets, including the Chinese general insurance market,' a spokesman for the Australian firm said.

'We therefore keep in regular dialogue with most of the major players in the Chinese market, and while IAG regularly reviews potential investment opportunities, it is not in a position to comment on any specific opportunities.'

Insurance Australia said in June it had ended three years of talks over buying a 25 per cent stake in China Pacific Property Insurance due to hurdles arising from the restructuring of the target's parent company before a planned listing.

Parent China Pacific Insurance in May received regulatory approval to exchange a 19.9 per cent stake for a 25 per cent holding in its life insurance unit signed over in 2005 to private equity firm Carlyle and Prudential Financial, the second-largest life insurer in the United States.