JD invests 537m yuan in insurance company

China e-commerce giant JD has invested 537 million yuan ($85.5 million) into Allianz China General Insurance Company Ltd for a 33.33 percent stake in the company, becoming the second largest shareholder after the transaction.

Allianz China General Insurance said in a statement its registered capital has increased from 805 million yuan to 1.61 billion yuan. China Sinda, a law firm specializing in the practice of intellectual property laws in China, which has invested 200 million yuan, will hold a 12.4 percent stake when the transaction has been completed.

The two companies reached a long-term cooperation, and will establish a digital joint insurance company, according to a report from the China Securities Network.

The media reported last year that JD was set to launch an internet insurance service and move into the online brokerage business and internet banking, a part of its expansion plan to surpass Alibaba Group Holding as China's largest business-to-customer business by 2021.