Mar. 7, 2007 (China Knowledge) – China Reinsurance (Group) Co. (China Re), the largest reinsurance company in China, is planning an IPO for its whole group by issuing A-shares in China’s domestic equity market within this year, according to the Securities Times citing an industry insider.
China Re has refuted reports of its planned IPO.
In December 2006, China Re received a US$4 billion capital injection from Central Huijin Investment Co., which triggered the restructuring of the company from being a wholly state-owned company to a joint stock one. The restructuring expected to be completed by the end of this March and China Re is tipped to become the biggest reinsurance company in Asia in terms of registered capital.
Talk in the market has it that the company will go public in September this year once it successfully brings in a foreign strategic investor, the Securities Times report said.
China Re is a wholly state-owned reinsurance company with registered capital of RMB 3.9 billion. Currently, the company maintains the reinsurance business as its main business line. It is also diversifying into other areas of operation through its several subsidiaries including China Property and Casualty Reinsurance Co. Ltd., China Life Reinsurance Co., China Continent Property and Casualty Insurance Co. Ltd., China Reinsurance Asset Management Co., China Insurance News, Huatai Insurance Agency & Consultant Services Ltd. and the Insurance Professional College.
Central Huijin gives China Re US$4bln capital injection