Allianze, Europe's biggest insurer, said it bought H shares of Shanghai-based China Pacific Insurance (Group) Co for US$855 million from Carlyle Group.
Munich-based Allianz now owns 240 million H shares in the Chinese insurer, representing 2.8 percent of China Pacific's total outstanding shares, or 10.4 percent of the H shares.
"We are pleased to have the opportunity to increase our long-term investment in CPIC as we continue to strengthen our position in this important growth market," said Michael Diekmann, chief executive officer of Allianz.
The German insurer has already set up a life insurance joint venture and a property and casualty insurance subsidiary in China.
The latest injection follows an initial investment of US$150 million during the Chinese insurer's H share initial public offering in December 2009.
Carlyle sold 215.8 million of China Pacific shares for HK$31.15 (US$4) each, according to a Bloomberg News report.
Foreign insurers continue to find China a tough market to operate in, a PricewaterhouseCoopers survey said in November said.
"Foreign insurance companies operating in China have tried in vain to gain traction and increase their market share," said Tom Ling, a PwC partner in charge of the insurance business.
"Established domestic insurers and the aggressive geographic expansion of the smaller insurers are giving foreign players a run for their money."
China Pacific lost 1.21 percent to 11.39 yuan (US$1.72) yesterday in Shanghai.
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