PICC Reinsurance Company Ltd is set to receive an injection of fresh capital from its parent firm, People’s Insurance Company (Group) of China Ltd., and its subsidiary PICC Property and Casualty Company Ltd.
The two companies are contributing a combined RMB2 billion (US$303.2 million) to boost PICC Reinsurance’s share capital. This follows the trend of Chinese insurance groups delving into reinsurance and seeking to reinsure risks on-shore.
The parent group is expected to contribute around RMB1.02 billion (US$154.7 million), while PICC Property and Casualty will invest RMB980 million ($148.7 million).
Post-capital infusion, People’s Insurance Company’s ownership of PICC Reinsurance will remain the same at 51%, while PICC Property and Casualty will own 49%.
PICC Reinsurance was formed in 2016 and began underwriting policies the following year. It primarily reinsures commercial property risks, and it also provides life, health, and personal accident reinsurance, among other reinsurance-related services.
The additional capital will be used to support the reinsurer’s business development projects, improve its solvency margin ratio, and increase available cash on hand.
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