Eurizon Financial Group, an Italian-based consortium, bought a 19.9 percent stake in Union Life Insurance for 800 million euro. The deal makes Union Life the most expensive insurer for overseas investors, with each share valued at 6.5 yuan.

"Our clear corporate governance was the major attraction for Eurizon," said Dai Hao, chairman of Union Life. "But Chinese shareholders will continue to maintain the controlling stake in the long term."

Established in 2005, Union Life is the country's 10th-largest life insurer in terms of premium income. The Wuhan-based insurer was founded by six companies, with the Zhongfa Industrial Group holding the largest stake. With the new cash injection, Union Life's registered capital is now more than 1.3 billion yuan. Eurizon becomes the second-largest shareholder, with two seats on the board.

Meanwhile, Union Life is actively seeking opportunities to buying a stake in the banking sector. Eurizon Financial Group, with 192 billion euro under management, is a subsidiary of Intesa Sanpaolo, the third-largest bank in Europe. Before the eventual deal with Eurizon, Union Life was in talks with more than 20 foreign investors. Union Life is hoping to find another partner to buy the remaining 5 percent that is on offer.

With the insurance sector growing at an average 30 percent annually in the past two decades, an increasing number of foreign insurance companies have hopped on the bandwagon.