Chinese property firm plots big Asian reinsurance start-up
Tuesday, 08 18 2015, Category: Insurance and Reinsurance, Country: China
Oceanwide Holdings, a Chinese property company, has said it plans to form a substantial new Asian reinsurance company likely to be called Asia-Pacific Reinsurance Company.
It said it will invest 2 billion yuan ($310 million) in the start-up, about 20 percent of its planned capital, complementing the contribution of five other investors. The board approved the plan unanimously at an extraordinary general meeting.
The company noted that the number of natural and man-made disasters and losses globally remain on an upward trend and the economic burden on governments continues to rise as a result. Given the fast economic growth taking place across Asia, it said more reinsurance companies were needed in the region.
It acknowledged that while China is fast becoming one of the biggest insurance markets globally, it has lagged behind on the reinsurance side with only China Re offering this type of business in the country.
Oceanwide said Asia-Pacific Reinsurance Company would plan to write property and life business as well as retrocessional coverage to international players.
Source: Intelligent Insurer