Five Chinese state-backed firms will invest in Sino-Korea Life Insurance, a Hangzhou-based joint venture between South Korea’s Hanwha Life Insurance and China’s Orient Financial Holdings Group.
The five firms are Changxing Financial Holdings Group, Wenzhou State-owned Financial Capital Management, Wenzhou Electric Power Investment, Wenzhou Transportation Development Group and Guotai Junan Zhengyu Investments. They will take a combined 41.7% stake in Sino-Korea Life, pushing the firm’s Chinese ownership to 75%, Yicai Global reported.
The investment will double the insurer’s paid-in capital to RMB3 billion (SG$616 million) and will dilute the stakes of Orient Financial and Hanwha Life to 33.3% and 25%, respectively. The firms currently each own 50% of Sino-Korea Life.
The five investors are based in Changxing County and Wenzhou City, two relatively developed regions of Zhejiang Province in eastern China. Following the transaction, Sino-Korea Life could get preferential treatment in those regions, especially in corporate partnerships and group insurance, according to a report by Shanghai Securities News, citing a senior actuary.
Sino-Korea Life reported a loss of RMB65 million in the first quarter of 2022.
