The trend highlighted the ambition of the cash-rich Chinese conglomerates such as Anbang Insurance Group and Fosun International Group to build an insurance-driven investment empire, inspired by the principles of US billionaire investor Warren Buffett.
Beyond Asia, Anbang has also expanded its presence in the US and European markets in a slew of high-profile deals, including its agreement to buy US insurer Fidelity & Guaranty Life for about $1.6 billion as well as its purchase of Dutch insurer Vivat last year and Belgium insurer Fidea in 2014.
But analysts warned the latest insurance M&A deals could bring new challenges such as low interest rate exposure, volatile business conditions and growth pain.
He cited low funding cost and depressed insurance asset prices in some markets as reasons for the latest wave of Chinese M&As in insurance.
Low funding cost encourages cash-flush companies to go on an M&A spree
"The targets are in large markets but these targets sometimes exhibit modest market positions," said Harris at Moody's Investors Service.
Another major active Chinese acquirer is Fosun, which has spent more than $5.7 billion buying insurance assets over the past two years. Prominent deals included Fosun's $1.84-billion purchase of an 80 percent stake in US insurer Ironshore Inc last March and its $1.5-billion acquisition of Portugal's largest insurer Fidelidade in 2014.
It was the second time for Anbang to acquire a South Korean insurer as it bought a controlling stake in Tongyang Life Insurance Co for $1 billion last year.
Just how increasingly prudent and cautious Chinese companies are is illustrated by Fosun's termination of its $462-million purchase of Israeli insurer Phoenix Holdings Ltd in February. Fosun attributed the termination to global market turmoil.
"In the case of Fosun, insurance can offer a long-term and low-cost channel to gain capital so that it can reinvest the premiums to feed its other business which could yield higher returns," said Zhao Shasha, an insurance analyst at Huarong Securities Co.
The moves by Chinese companies came at a time when overseas insurers, in particular those in Europe, are struggling with stricter regulatory requirements as well as a low interest rate environment, which adversely affected their investment returns. For, they often invest heavily in fixed-income assets.
The focus on insurance also reflects the shift in China's overseas M&A activity from energy and resource industries to service and consumer-centric sectors.
Simon Harris, managing director for global insurance and managed investments at global ratings agency Moody's Investors Service, said that the M&As are attractive because of a combination of economics and favorable asset prices.
Analysts said the M&As could also be fueled by the desire of Chinese companies to diversify their investment into global markets against a weaker renminbi and the intention to gain more low-cost capital through the expansion of the insurance business.
