New China Life Insurance Co shares dropped to a 14-month low yesterday in Hong Kong after Zurich Insurance Co Ltd announced it was selling HK$2.2 billion (US$283 million) worth of shares in the Chinese insurer.

Zurich Insurance said a deal had been reached to sell 97.5 million Hong Kong-listed shares of New China Life at HK$22.50 apiece to a "small group of institutional investors" through private placement, according to a statement released yesterday.

The selling price equals New China Life's closing price in Hong Kong yesterday after the shares dropped 6.5 percent, the largest since May 16, 2012. In Shanghai, the shares lost 4.4 percent, the most since July 3.

Geoff Riddell, Zurich's chairman for Asia-Pacific, the Middle East and Africa, said the company will reinvest proceeds from the sales in Asian markets and diversify investment without losing its position in Asia.

"Zurich is a long-time investor in New China Life, and appreciates its high quality management team, clear strategy and good prospects within China's life insurance market," said Riddell. "The sale reflects Zurich's desire to manage its financial exposure to a large single holding of shares."

The deal is expected to be completed by next Tuesday.