South Africa's largest healthcare insurer, Discovery Holdings Ltd, is to increase its stake to 25 percent in Ping An Health Insurance Co, a unit of China's second-biggest life insurer by premiums after China Life.

The parent company, Ping An Insurance (Group) Co of China Ltd, and Discovery have agreed for the South African insurer to increase its stake in Ping An's health insurance unit to 24.99 percent from 20 percent, a Ping An statement said on Friday. Discovery acquired its initial stake in Ping An Health Insurance Co in 2010.

Ping An did not disclose pricing, and was not available for comment on Friday. The transaction is likely to be finalized by the second quarter of next year, according to The Wall Street Journal.