News eDaily18 Sep 2017

China:ZhongAn to expand offerings to include life insurance

18 Sep 2017

ZhongAn Online Property and Casualty Insurance plans to add life insurance and other healthcare products to the range of policies it offers to accelerate its growth after going public in Hong Kong, reported Reuters.

The company, founded by Alibaba Executive Chairman Jack Ma, Tencent Chairman Pony Ma and Ping An Insurance Group Chairman Ma Mingzhe also plans to offer its technology to insurers inside and outside of China.

ZhongAn, China's first online-only insurer, aims to start taking investor orders this week, reported Bloomberg citing sources.

The company's Hong Kong initial public offering could raise as much as US$1.5 billion, people with knowledge of the matter said, as it pursues the city’s first major FinTech listing.

Japan's SoftBank Vision Fund, a giant technology investor, has been discussing buying $400 million to $500 million of ZhongAn stock as a cornerstone investor in the IPO, the people said.

ZhongAn is offering 199.3 million new shares in an indicative range of HK$53.70 (US$6.87) to HK$59.70 each. The issue is seen as expensive as the $11-billion valuation for the insurer implies an adjusted price-to-book level of 4.3 times, more than triple the 1.3 times for the largest Chinese general insurer, PICC Property & Casualty, which had revenue of CNY301 billion last year, according to data compiled by Bloomberg. ZhongAn, on the other hand, reported net written premiums of CNY3.4 billion (US$519 million) last year, or 0.5% of China’s insurance industry,


 

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