New China Life heads for a dual listing

Another of China’s insurance
giants is set to become a listed company. New China Life, China’s
third-largest life insurer, has announced plans to raise up to $4bn
in new capital through an initial public offer on both the Shanghai
and Hong Kong stock exchanges.

Among New China Life’s
existing shareholders, the largest is state-owned Central Huijin
Investment, which in December 2009 bought a 38.8% stake in the
insurer from the China Insurance Protection Fund.

Central Huijin Investment’s
acquisition of the stake formed part of the restructuring of New
China Life which had experienced considerable turmoil over the
previous four year, including having no board of directors at one
stage.

New China Life’s
second-largest shareholder, Zurich Financial Services (ZFS), holds
a 15% stake, down from 20% following the sale earlier this year of
a portion of its interest to an unnamed buyer.

While a selling price was not
disclosed, ZFS provided an indication that it was for more than
$250m.

New China Life’s
third-largest shareholder is Chinese steel producer Baosteel Group,
which has a stake of around 17%.

According to the China
Insurance Regulatory Commission, New China Life recorded gross
written premium income of $13.8bn in 2010 and had a market share of
8.9%.

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