Zurich Financial to keep New China Life stake

Date:2011-09-01liuhongli  Text Size:

Zurich Financial does not plan to cut its 15 percent equity stake in China’s third-largest life insurer, Reuters reported, citing the Swiss insurer’s chief executive.
The Chinese company, New China Life, is applying for a dual listing in Hong Kong and Shanghai, a move that could raise up to $4 billion, sources told Reuters earlier this month.
Zurich, Europe’s fourth-biggest insurer, sold a quarter of its stake in the company to Nomura earlier this year for about $441 million.
“We have no plans to dispose the 15 percent (equity stake in New China Life),” CEO Martin Senn said at a media briefing in Beijing.
Like other global insurers, Zurich faces damage to its investment portfolio from this month’s market downturn, but has reported strong profits for the second quarter, largely because of premium growth in Asia and Latin America.
As a foreign company, Zurich can only operate in China’s insurance market with a local partner, giving it a strong incentive to retain at least part of its stake in New China Life.
Zurich Financial will continue to support New China Life as a shareholder and to share expertise with its Chinese partner “whenever possible,” said Senn.

 

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