Suning looks to tap insurance business

China's largest electric appliances retailer Suning Commerce Group Co Ltd announced on Thursday it will jointly launch an insurance company with its parent company.

In a filing to the Shenzhen Stock Exchange, Suning Commerce said the insurance company will be registered with 120 million yuan ($19.6 million) to act as sale agent of insurance products and also engage in premiums collection.

If it succeeds in winning approval from the China Insurance Regulatory Commission, Suning Commerce will become the country's first e-commerce firm to obtain a license for dealing with insurance sales business.

Suning Commerce posted 55.5 billion yuan in revenue in the first half of this year, up 17.68 percent year-on-year, but its net profit is down by 58.17 percent from a year ago to 734 million yuan.