HSBC in talks to buy stake in Ping An Insurance
( 2002-07-23 14:13 ) (7 )

Global banking giant HSBC Holdings said Tuesday it is negotiating to take a minority stake in mainland's second largest life insurance firm Ping An Insurance Co.

"The investment is subject to agreement of terms and conditions and receipt of various regulatory approvals," it added.

Ping An Insurance has a 28.7 percent market share of the life insurance market in the mainland and life premium income of US$4.8 billion last year.

It also has the third largest property and casualty insurance operations with a 9.8 percent market share and premium income of US$812 million in 2001.

The mainland insurance company has more than 20 million policy holders and around 21,500 employees.

In 2001, it reported audited profits of US$351.3 million, the statement added.

The insurance industry is growing rapidly in China with premium incomes totalling 211 billion yuan (US$25.4 billion) last year, a gain of 32.2 percent from the year before, according to the China Insurance Regulatory Commission.

Insurance is considered a huge growth industry in China, as the social safety nets of the past are gradually dismantled and people are increasingly told to make their own arrangements.

Life premiums rose 42.8 percent in 2001 from the year before to a total of 142 billion yuan.

Entry into the Chinese market by overseas companies is being liberalised after the world's most populous nation joined the World Trade Organization at the end of last year.