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October 18, 2011updated 13 Apr 2017 8:47am

Prudential Financial gets go-ahead in China

The JV partners received initial approval from the China Insurance Regulatory Commission (CIRC) in mid-September to form what will be the first life insurance company in China that will be owned jointly by a non-state-owned enterprise and a foreign capital enterprise.

By LII editorial

Making a somewhat belated entry into China, US insurer Prudential Financial is to establish a new life insurance company in a 50:50 joint venture (JV) with Fosun International.

The JV partners received initial approval from the China Insurance Regulatory Commission (CIRC) in mid-September to form what will be the first life insurance company in China that will be owned jointly by a non-state-owned enterprise and a foreign capital enterprise.

The JV will start with registered capital of CNY500m ($78m) with Prudential Financial’s US insurance arm Prudential Insurance Company of America (PICA) and Fosun each contributing 50%. The JV will be headquartered in Shanghai, and it is expected to begin operations in the fourth quarter of 2012, following receipt of final approval by CIRC and other regulatory authorities.

Founded in 1992, Fosun’s business interests include pharmaceuticals, health care, property, steel, mining and retailing. Fosun also has a stake in general insurer Yong’an Property Insurance. According to Prudential, Fosun is the largest non-state-owned enterprise in Shanghai.

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