Buying new shares to retain holding
By Zhang Fengming |
October 28, 2010, Thursday
|
Print Edition
Print Edition
ZURICH Financial Services Group said yesterday that it would pay US$420 million to buy new shares of New China Life Insurance Co to keep its 20 percent stake in the Chinese insurer.
Zurich Financial will purchase up to 280 million new shares of New China Life at a fixed price of 10 yuan (US$1.49) each, or a total of US$420 million, under a private share subscription and capital increase program in the Chinese insurer. The Swiss insurer seeks to maintain its existing 20 percent stake in the Chinese insurer.
"Our decision to participate in New China Life's share issue reflects our belief that China's fast-growing insurance sector represents an attractive investment opportunity," said Martin Senn, Zurich Financial's CEO. "The Chinese government has expressed a clear intent to further develop the country's insurance market and New China Life is well-positioned in the life market."
He said the Swiss insurer will also continue to build its own business in China.
Zurich Financial first invested in Beijing-based New China Life in 2000 and has invested US$131 million in the Chinese company so far.
With gross written premiums of US$9.6 billion in 2009, New China Life has a 9.3 percent share of the Chinese life insurance market as of June, said the China Insurance Regulatory Commission.
Zurich Financial will purchase up to 280 million new shares of New China Life at a fixed price of 10 yuan (US$1.49) each, or a total of US$420 million, under a private share subscription and capital increase program in the Chinese insurer. The Swiss insurer seeks to maintain its existing 20 percent stake in the Chinese insurer.
"Our decision to participate in New China Life's share issue reflects our belief that China's fast-growing insurance sector represents an attractive investment opportunity," said Martin Senn, Zurich Financial's CEO. "The Chinese government has expressed a clear intent to further develop the country's insurance market and New China Life is well-positioned in the life market."
He said the Swiss insurer will also continue to build its own business in China.
Zurich Financial first invested in Beijing-based New China Life in 2000 and has invested US$131 million in the Chinese company so far.
With gross written premiums of US$9.6 billion in 2009, New China Life has a 9.3 percent share of the Chinese life insurance market as of June, said the China Insurance Regulatory Commission.
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