CIRC Approves Financial Restructuring of China-based Sun Life Everbright

Posted on Jul 29, 2010 by Sergio Ulloa (G+)

? China-based Sun Life Everbright Life Insurance announce that China insurance regulators have approved the insurers proposed restructuring. The revamp will result in additional strategic investors buying shares in the joint venture, increasing operating capital. China Everbright formed a joint venture with Canadian owned Sun Life in 2002, resulting in Sun Life Everbright. A venture which resulted in both companies expanding their exposure across China. This provided a broad range of individual products including life and health insurance. The partnership between Everbright and Sun Life resulted in 18 offices within China The revamp of Sun Life Everbright ends the Sino-foreign joint venture and opens the doors that will eventually turn the company into a Chinese-owned entity. China Life Everbright will retain a 50% share, while China North Industries Group Corporation and Anshan Iron and Steel Group Corporation each obtain 12.5% of the life insurer. Sun Life still retain a 325% interest in Sun Life Everbright after the company has fully completed the repositioning. The Canadian-based Sun Life will also continue to provide services - such as risk management and actuarial services - to Sun Life Everbright. When plans were first announced, CEO of Sun Life Financial, Donald Stewart, Said "This strategic restructuring is in the best long-term interest of our shareholder and secures out participation in the tremendous growth and promise of China life insurance and broader financial services market." At present Sun Life Everbright is ranked 15th largest life insurer in China, although with the restructuring Sun Life Everbright aims to rapidly expand its market penetration across China. In recent years the financial and insurance industry has seen considerable action from foreign and domestic firms competing to strengthen their participation in the profitable far-east economy. Tang Shuangning, Chairman of China's Everbright Group, said when first announcing the restructuring plans in 2009: "This important agreement strengthens the strategic partnership between Sun Life and China Everbright. It will advance mutual support and the common interests of both companies to grow, to serve Chinese consumers, and to achieve a larger share of the Chinese domestic protection market." Sun Life Everbright's new business model paves the way for the company to take a more aggressive approach to business opportunities in China and its hinterland.  The revamp comes at a time when insurance and financial sectors are seeing increased activity from local Chinese companies and foreign firms looking to take full advantage of the growth opportunities in the Chinese economy. Demand for insurance products - particularly health insurance - is a key source of activity for new business. Sun Life Everbright Life already has a strong presence in major areas within China - including: Beijing, Zhejing, Jiangsu, Shanghai, Guangdong and Chongqing. Insurance Companies Mentioned: Sun Life Financial Sun Life Financial is an international financial services organization providing a range of protection and wealth accumulation products and services to individuals and corporate customers. Sun Life Everbright Life Insurance Co. Ltd Sun Life Everbright Life Insurance was established in April 2002. It's shareholders include China Everbright Group, Canada's Sun Life Financial Group, China North Industries Group Corporation and Anshan Iron and Steel Groups, based in Tianjin