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China Life to set up property insurance arm

By Hu Yuanyuan (China Daily)
Updated: 2006-09-06 09:15

China Life Insurance Co, the country's largest life insurer, has received the green light to set up a property and casualty insurance arm.

The move, approved by the industry regulator, will expand the company's core business scope, top managers said yesterday.

"Non-life insurance and pensions will be included in our core business portfolio very soon," said Yang Chao, president of China Life, adding the insurer's current major business lines are life insurance and assets management.

"The property and casualty arm will probably be launched by China Life Insurance (Group) and China Life Insurance Company Limited," said Yang. "But we will also think about taking over existing non-life insurers, including the Shanghai-based Dazhong Insurance Co."

According to Yang, banking will also be one of the core businesses for China Life.

"We will enhance the equity investment into banking once the policy loosens," Yang added.

China Life acquired 70 million shares in the Fuzhou-based Industrial Bank Co Ltd through an auction in August and is bidding for a stake in the Guangdong Development Bank.

Meanwhile, it has also shown great interest in the Agricultural Bank of China (ABC), one of the "big four" State-owned lenders.

"We are willing to conduct capital co-operation with ABC and establish deep ties in terms of shareholding reforms and market listing, as either a strategic or financial investor," said Yang.

To fuel its business expansion, China Life has embarked on a listing in the Shanghai bourse.