SHANGHAI, Nov 17, 2010 (SinoCast Daily Business Beat via COMTEX) --
Insurance companies in China are keen to replenish their capital base in the fourth quarter, laying a foundation for future expansion.
China Insurance Regulatory Commission recently approved BoCommLife Assurance Company Ltd., AXA-Minmetals Assurance Co., Ltd. and Cathay Life Insurance Co. to increase the registered capital by CNY 300 million, CNY 200 million and CNY 400 million, respectively.
Beijing-headquartered Minsheng Life Insurance Co. is set to add its registered capital to over CNY 5 billion from CNY 2.7 billion. With over CNY 18 billion total assets, the insurer has 20 province-level branches, 144 city-level central sub-branches and 546 county-level outlets.
New China Life Insurance Co., the country's third largest life insurer by premium, reportedly intends to kick off a CNY 14 billion capital increase by end-2010.
Forty-six insurers in China have completed 69 capital increases from 2009 to September 2010 with approved increment of CNY 45.85 billion. Ping An Property Insurance Co. finished CNY 8 billion capital increase, the largest.
Several other insurers have won regulatory approval for issuing of subordinated bonds this year to replenish the second-tier capital.
With the sustainable economic growth and upcoming aging society, an insurance boom is expected to come in China in coming ten years.
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Chinese companies getting ready to expand into the rest of Asia, maybe further afield is how I see this development, and why shouldn’t they? The rest of Asia should brace for the Chinese wave of companies heading their way.
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