Guohua Life Insurance opened yesterday in Shanghai to tap into the country's rising need for financial protection.

The Shanghai-based life insurer has a registered capital of 300 million yuan (US$40.5 million). The set-up of the insurer has brought the total number of China's insurance companies to 104, half of which are life insurance companies.

The insurer got the go-ahead from China Insurance Regulatory Commission to start business earlier this year.

Hubei Biocause Pharmaceutical Co, a Shenzhen-listed drug maker, holds a 19.99-percent stake in Guohua Life as the biggest shareholder. Biocause invested 59.97 million yuan in the life insurer.

Guohua will make individual life insurance its key business area with a team of qualified agents.

The insurer, with its biggest shareholder's pharmaceutical background, will also team up with hospitals to sell health insurance products. The tie-up with hospitals is not limited in buying stakes of medical institutions, the insurer said yesterday.

Shanghai is gearing up to be an international financial hub, which is already home to big-name financial players from the banking, insurance and securities sectors.

Life insurance premiums topped 29.27 billion yuan in the first 10 months in Shanghai, up 16 percent from a year ago. At the end of October, there were a total of 33 life insurance companies in Shanghai.