Two wholly owned units of Cathay Financial Holding Co. have obtained approval from Chinese regulators to enter the property insurance market on the mainland, the Taiwanese company has said.
Cathay Life Insurance Co. and Cathay Century Insurance Co. have received approval from the China Insurance Regulatory Commission to jointly form a property insurance company in China, the financial holding company said in a weekend filing to the Taiwan Stock Exchange.
The investment still needs Taiwan’s regulatory approval, the company has said.
Taiwan’s Economic Daily News said Cathay Life and Cathay Century Insurance will each invest 200 million yuan (US$26 million; euro18 million) for a 50 percent stake of the property insurance company to be located in Shanghai.
Cathay is the first Taiwanese financial institution to receive a permit to enter the Chinese property insurance market. The new company will add to its existing life insurance operations in China.
Cathay Life opened its first branch in China in February 2006 in Jiangsu in a 50-50 joint venture with China Eastern Airlines Group, which owns China Eastern Airlines Corp.
The venture operates around 15 branches in Shanghai and provinces of Jiangsu and Fujian, and recently obtained China’s regulatory approval to open branches in Beijing.
Source: AP
Topics Carriers Legislation China
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