Chinese insurer gets $4 billion capital injection to prepare for share sale
China’s biggest reinsurance company, China Reinsurance Group Co., has received a $4 billion capital injection from a government agency in preparation for a stock market debut this year, a state news agency said.
The money came from Central Huijin Investment Co., owned by the Chinese central bank, the Xinhua News Agency said.
State-owned China Re acts as an insurer for China’s insurance companies, providing backup coverage and helping them to meet large claims.
“The money will replenish the reinsurer’s capital strength to meet a huge domestic insurance demand and power an expected listing in the stock market,” Xinhua said.
It gave no details, but earlier reports said China Re planned to sell shares on the Hong Kong and Shanghai markets.
Chinese banks are in the midst of a multibillion-dollar wave of initial public share offerings, but China Re would be the first insurance company to carry out an IPO.
China Re’s capital injection will increase the amount of insurance the company is permitted to issue, the agency said.
China’s reinsurance market is expected to total 100 billion yuan ($13 billion) by 2010, Xinhua said.
Topics Reinsurance China
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