Yudean Captive Insurance, part of the Guangdong Yudean Group, a Guangzhou-based power group, plans to increase its capital by CNY200 million (US$31.4 million) to CNY500 million.
After the capital increase, Yudean Captive Insurance retention capacity will increase from CNY30 million to CNY50 million, which will increase its bargaining power in the reinsurance market, enlarge its underwriting ability, and increase risk management capability.
The insurer's annual report for 2017 shows that it posted a loss of CNY3.42 million and had total assets of CNY322 million at 31 December. The captive insurer received approval to start operations in November 2017.
Yudean Captive Insurance is owned 51% by the Guangdong Yudean Group with the remaining 49% held by Guangdong Electric Power, which is also a subsidiary of Guangdong Yudean Group.
Apart from Yudean Captive Insurance, there are six other Chinese captive insurers. Three of these are registered in Hong Kong.