Starr International has taken a 20% stake in Chinese property insurer Dazhong Insurance Company.

The US insurer was invited by the Shanghai government to take a shareholding in Dazhong, a subsidiary of China Life Insurance.

Although no figures were released at the formal signing ceremony in Shanghai last week, it is understood Starr has paid about CNY350 million ($50 million) for the stake.

The deal has been approved by the China Insurance Regulatory Commission who also attended the signing ceremony.

Starr Chairman and CEO Maurice Greenberg says the aim is now to use the US insurer’s expertise in product development and distribution to broaden Dazhong’s services and market penetration.

Starr was founded in Shanghai in 1919 and Mr Greenberg says he is glad to be involved again in the Chinese insurance market.