Chinese insurer Ping An of China announced jointly with Fortis Thursday that it has purchased 4.18 percent of the Belgian company from the stock markets for 1.81 billion euros.

    The announcement said the deal made Ping An Life Insurance Company Ltd. under the Ping An Group the biggest single shareholder of the major European financial institution.

    Fortis has decided to invite general manager of Ping An Group, Zhang Zixin, to join its board of directors. Once ratified by the Belgian supervisory department, Fortis will apply for shareholders’ approval in April 2008 for Zhang’s appointment.

    In addition, the two sides also indicated intent to explore cooperative opportunities in other business fields.

    Under the deal, Ping An could increase its holding to 4.99 percent and may also buy Fortis shares above the threshold subject to prior consent from the Fortis board.

    If another shareholder acquires a stake bigger than Ping An’s, the Chinese company can buy more interest to match the bigger holding.

    Fortis said it would assist Ping An in reaching and maintaining such a shareholding level, except that acquisition of control over Fortis is not allowed. Ping An said it had no intention to acquire control.

    Fortis is an international financial service provider running banking and insurance businesses. By Oct. 31, 2007, its market capitalization reached 48.6 billion euros, making it one of the top 15 European financial institutions.

    The deal, which was an ordinary financial investment using the group’s insurance funds, would allow Ping An to further optimize its global asset allocation and enhance its investment return, said Ping An’s chairman and CEO Ma Mingzhe.

    Ping An would achieve a faster rate of sustainable growth by benefiting from Fortis’ expertise in cross selling, risk management and innovation in product design, he said.

    Maurice Lippens, Fortis’ chairman of the board, said the deal would raise his company’s profile in China and provide it with smoother access to the fast-growing markets such as China, which would lift Fortis’ growth potential.

    Fortis has had a presence in China through its joint ventures Taiping Life Insurance Co. and Fortis Haitong Investment Management Co.