China's first private reinsurer may be launched soon
Source: Asia Insurance Review | Sep 2015
A new reinsurance company, which is expected to be China’s first private reinsurer, with planned capital of CNY10 billion (US$1.56 billion) will be formed to write property and life business as well as retrocessional coverage to international players.
Chinese property conglomerate Oceanwide Holdings announced that its board has approved its plans to invest CNY2 billion in the start-up – about 20% of its planned capital. It is looking to launch the reinsurer, which is tentatively called Asia-Pacific Reinsurance Ltd, with five other investors from various sectors, including real estate, investment and food.
The company sees opportunities in the sector due to the increasing number of natural and man-made disasters and the continued rapid economic development in the region. And while China grown to become one of the largest insurance markets in the world, it only boasts of China Re on the reinsurance side.
Oceanwide Holdings is also an investor in the China Minsheng group which recently agreed to acquire insurance and reinsurance company Sirius from White Mountains.
The setting up of the reinsurer and its name are awaiting approval from the CIRC.