Posted on Jul 09, 2010 by Sergio Ulloa
The China Insurance Regulatory Commission (CIRC) has cleared Guohua Life Insurance Co. to increase its capital to US$147.5 million (EUR 116 million). This additional capital injection will help Guohua towards creating a foundation that guarantees its sustainable development, having started with an original registered capital of US$44.3 million (EUR 34.9 million).
With headquarters in Shanghai, Guohua Life was established back in November 2007. Most recently, the CIRC authorised the opening of a new branch of the company in the northern Chinese province of Liaoning. Other locations where Guohua has branches are Beijing, Zhejiang, Shandong, Guangzhou, Hebei and Jiangsu.
Hubei Biocuse Pharmaceutical Co. Ltd., listed in the Shenzhen stock exchange, will hold a 20 percent stake in Guohua Life equivalent to 200 million shares following the capital increase, becoming the largest shareholder of the insurer. Three other companies based in Shanghai will hold a 19 percent stake, whilst another two companies based in Hainan will hold stakes amounting to 13.5 and 9.5 percent, respectively.
During the first five months of this year, the premium income generated by Guohua Life amounted to more than US$333.5 million (EUR 262.6 million).
Insurance Company mentioned:
China Life Insurance Company Limited provides a range of insurance products, including individual life insurance, group life insurance, accident insurance and China health insurance products. It also offers accident and short-term health insurance policies to individuals and groups. The Company operates in three business segments: individual life insurance, group life insurance business and accident and health insurance business. As of December 31, 2009, it had 115 million individual and group life insurance policies, annuity contracts and long-term health insurance policies in force. It also offers accident and short-term health insurance policies to individuals and groups.