Japans largest non-life insurance group, the Millea Group, through Millea Holdings subsidiaries, is venturing into the life insurance market in China.

Tokio Marine and Fire Insurance Co and its affiliate Millea Asia have reached an agreement to acquire a 24.9% interest in Sino Life Insurance Company Limited for RMB1.06bn (US$127m).

Freshfields Bruckhaus Deringer acted as international legal counsel to the Millea Group with Robert Ashworth, Hong Kong-based head of the firms Asian corporate practice, leading the team. HSBC acted as financial advisers to the Millea Group.

The agreement was signed on 21 April and is subject to the approval of the China Insurance Regulatory Commission. Under regulations, foreign investment in a domestic insurance company is limited to under 25%.

Unlike JVs, Sino Life is geographically unrestricted in China.