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November 23, 2015updated 13 Apr 2017 8:29am

Evergrande acquires 50% stake in life insurer GELC for $617m

Evergrande Real Estate Group, a China-based real estate developer, has purchased a 50% stake in a life insurance company GELC, for RMB3.9bn ($610m), as it looks to diversify into insurance business amid slowing property market in the country.

By Verdict Staff

Currently, Chongqing City Construction Investment, Chongqing Land Group, Chongqing Casin Group and The Great Eastern Life Assurance Company, each own a 25% interests in GELC.

Evergrande will purchase the shares held by the Chongqing City Construction Investment (Group) and the Chongqing Land Group while The Chongqing Casin Group and The Great Eastern Life Assurance Co will each retain their holdings.

Following completion of transaction, which was approved by China’s insurance regulator recently, the acquired entity will be known as Evergrande Life.

Evergrande said: "The acquisition is a strategic deployment for the Group to enter the insurance sector.

"Currently, China’s insurance sector has entered a fast track of development, where insurance licenses have their own unique capital investment value."

Established in 2006, in partnership with the Chongqing government, GELC is claimed to be the only Sino-foreign joint venture life insurer based in western China.

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