Taiwan’s Cathay buys PE-owned Conning for $240m

Upon completion of the deal, Conning will operate as an independent company within the Cathay group, led by its current president and CEO Woody Brandford. The acquisition is a significant step towards Cathay's goal of building a broad financial services platform with expertise in asset management, banking and insurance.

"This transaction will allow both companies to broaden the capabilities available to their clients, support growth in the third-party asset management market, and benefit from the resources and expertise of each organization," according to a statement.

Founded in 1912, Hartford-based Conning provides asset management, risk and capital management solutions and insurance research, with $92 billion in assets. In 2011, Cathay acquired a 9.9% stake in Conning for about $19 million. The two parties then formed a Hong Kong-based joint venture to offer asset management services in Asia.

Aquiline acquired Conning in 2009 and is the majority shareholder.

Cathay Life, a wholly-owned subsidiary under Cathay Financial Holding, has total assets of over $146 billion and serves over seven million customers. Apart from Taiwan, it has also established branches in mainland China and Vietnam.

Taiwan's industry regulator - the Financial Supervisory Commission (FSC) - is easing rules for insurers to invest overseas. Last April, restrictions were lifted to allow them to invest in overseas commercial property. The regulator then permitted insurers to make direct investments in foreign financial services sectors.

The Conning transaction is subject to regulatory approval and is expected to close in the second half of next year.

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• Topics
• Greater China
• Buyouts
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• Exits
• North America
• Taiwan (China)
• buyout
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