Posted on Jan 12, 2011 by Sergio Ulloa
New York Life has entered into arrangements to sell its stake in its Shanghai-based joint venture, Haier New York Life Insurance Co. Ltd.
Shanghai-based Haier New York Life Insurance had previously been a joint venture between New York Life Insurance and electrical appliance manufacturer, Haier Group, with each partner holding a 50 percent stake. The Haier New York Life Insurance company has a registered capital of RMB 835 million (US$ 126 million).
As per the agreement, New York Life has sold a 25 percent stake in Haier New York Life to Japanese insurer, Meiji Yasuda Life Insurance Co., which happened on the 7th
January 2011. New York Life will transfer its remaining 25 percent stake in the Haier New York Life joint venture to its Chinese partner, Haier Group Corp. The joint venture will be renamed from Haier New York Life Insurance to Haier Meiji Yasuda Life Insurance Co., Ltd and will provide Meiji Yasuda Life with an entryway into the Chinese insurance market. Approval for the Equity Interest Transfer has already been granted by the China Insurance Regulatory Committee (CIRC).
After the shares owned by New York Life have been transferred to Haier Group and Meiji Yasuda Insurance, the joint venture will subsequently issue new shares worth RMB 345 million (US$ 52 million) to the shareholders. This will result in the joint venture's registered share capital increasing to RMB 1.18 billion (US$ 178 million), and will lead to Meiji Yasuda Insurance's shareholding in the joint venture increasing to 29.24 percent.
Dick Mucci, the Chairman and Chief Executive Officer of New York Life International said that "After a thorough review to determine the best strategic direction for the future of HNYL, the partners concluded that majority ownership of the insurance company was most desirable and that Haier Group would fill that role going forward. Haier and New York Life have worked hard to build a strong foundation for HNYL and we have now decided to enter into this transaction with Haier Group and Meiji Yasuda Life. This transaction will also allow New York Life to devote our financial and management resources to our other operations, which serve millions of our policyholders."
New York Life
The New York Life Insurance Company is one of the largest mutual life insurance companies in the United States, and also operates in India, Mexico, Thailand, China and Taiwan. The Fortune 100 Company was started in 1845, and is headquartered in New York, New York. New York Life sells life insurance, retirement income and investment products, as well as long-term care insurance.
Haier Group is a manufacturer of electric appliances, based in Qingdao, Shandong Province in China. In 2009, the company had a turnover of RMB 124.3 billion (US$ 18.8 billion).
Meiji Yasuda Life Insurance
Established in 1881, Meiji Yasuda Life Insurance was the first life insurance company established in Japan. Headquartered in Tokyo, Meiji Yasuda Life now has over 40,000 employees in Japan, as well as 81 regional offices, 22 group marketing offices and over 1,000 agency offices. The company also has 8 subsidiaries or representative offices oveseas.