First PPP rein­surer opens for busi­ness

Three State firms hold 60% stake in Qian­hai

China Daily (Hong Kong) - - BUSINESS - By LI XIANG lix­i­ang@chi­nadaily.com.cn

Qian­hai Rein­sur­ance Co Ltd of­fi­cially launched its busi­ness on Wed­nes­day, be­com­ing China’s first rein­surer cre­ated un­der a pub­lic-pri­vate part­ner­ship.

With a reg­is­tered cap­i­tal of 3 bil­lion yuan ($436 mil­lion), the Shen­zhen-based rein­surer will carry out busi­ness in prop­erty and ca­su­alty rein­sur­ance as well as life and health rein­sur­ance, ac­cord­ing to the in­surer’s of­fi­cial state­ment.

Three State-owned com­pa­nies — Shen­zhen Qian­hai Fi­nan­cial Hold­ings Co, China Post Group and Shen­zhen Cap­i­tal In­vest­ment Co Ltd — jointly own a 60 per­cent stake in the bil­lion yuan new rein­surer. The rest of the shares are owned by four pri­vate com­pa­nies, in­clud­ing Zhe­jiang Aishida Elec­tric Co Ltd and Chi­nese fash­ion brand Fu­jian Sept­wolves In­dus­try Co Ltd.

The estab­lish­ment of the rein­surer un­der­scores China’s ef­fort to de­velop its rein­sur­ance mar­ket and en­cour­age pri­vate cap­i­tal to par­tic­i­pate in the coun­try’s fi­nan­cial sys­tem. The gov­ern­ment has set the goal of ex­pand­ing the Chi­nese rein­sur­ance mar­ket to 330 bil­lion yuan of pre­mi­ums by 2020.

Feng Hong juan, who is ex­pected to be ap­pointed as the chair­man of Qian­hai Re, said that the rein­surer will take ad­van­tage of its lo­ca­tion in Shen­zhen, one of the hubs of fi­nan­cial innovation and the mod­ern ser­vice in­dus­try in China, and will seek broader op­por­tu­ni­ties in over­seas mar­kets.

“While fo­cus­ing on the rein­sur­ance busi­ness in the do­mes­tic mar­ket, we will seek to strengthen co­op­er­a­tion be­tween the Chi­nese main­land and Hong Kong mar­kets and to ex­plore op­por­tu­ni­ties in the coun­tries along the Belt and Road Ini­tia­tive,” Feng said in a state­ment.

Wang Guo­jun, an in­sur­ance pro­fes­sor at the Univer­sity of In­ter­na­tional Busi­ness and Eco­nom­ics, said the estab­lish­ment of Qian­hai Re will in­crease com­pe­ti­tion in the Chi­nese rein­sur­ance mar­ket, which is in ur­gent need of devel­op­ment.

The tar­get the Chi­nese gov­ern­ment has set for the rein­sur­ance mar­ket by 2020

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