While foreign companies line up to enter the Chinese insurance market, China’s domestic insurers are doing so well that they’re looking to public offerings to raise additional funds.
According to a report from the China Information Network annual growth in premium revenues has averaged over 30 percent during the period 1981-1999, nearly five times more than the growth of China’s GDP in the same period.
Many Chinese insurers need additional cash to continue their expansion, and are considering public offerings of their shares in order to raise it. The process, however, is lengthy and requires the consent of both the China Insurance Regulatory Commission and the China Securities Regulatory Commission.
The information agency gave no indication as to whether foreign companies would be permitted to acquire shares in Chinese insurers, but indicated that a number of them had begun applications for public offerings.
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