A financial representative of People's Insurance Co (Group) of China with a visitor at a financial exhibition in Beijing. The insurance group plans to be listed in Hong Kong next year. [Photo / China Daily]
State-owned group in final stages of finding investors for IPOBEIJING - People's Insurance Company (Group) of China (PICC), one of the nation's largest insurance groups, will quicken its step towards listing its different divisions as a single entity on the Hong Kong bourse, the group's president, Wu Yan, said on Thursday.
"We are now in the final stages of roping-in strategic investors, thus paving the way for our capital operation in the next stage," Wu said. "Meanwhile, we have communicated with the relevant regulators and they are quite supportive of our plan."
However, Wu declined to provide details about a potential partner, but said the deal will come very soon.
Zhou Shurui, chairman of the auditing committee of PICC, said earlier that the potential partner is a domestic company.
"We have also exchanged ideas with the regulators in Hong Kong," Wu added.
A source close to PICC told China Daily that the company will seek an appropriate opportunity to list on the Hong Kong Stock Exchange next year, and will later consider a listing in Shanghai.
The group's gross premium income reached 222 billion yuan ($33 billion) in the first 10 months of 2010, a rise of 34.2 percent from the same period last year.
"Such a growth rate is partly due to the fast expansion of our life insurance business," said Wu. "And our life insurance arm has greatly improved our valuation when bringing in strategic investors."
Established in 2005, PICC Life Insurance made a profit last year, whereas usually, a life insurer needs seven-to-eight years to reach the break-even point.
Shanghai to boost its M&A marketThe company's market ranking improved to sixth from 19th in 2006. The company's net profit during the first ten months of this year reached 546 million yuan.
"We expect our premium income to exceed 100 billion yuan next year, with total assets surpassing 250 billion yuan," Li said.
Asia Financial, one of the shareholders of PICC Life Insurance Co, hoped to have more strategic cooperation with PICC, said Bernard Charnwut Chan, president of Asia Financial.
So far, Asia Financial and Bangkok Bank have a combined 10 percent stake in PICC Life Insurance.
When PICC stepped up its listing process, other Chinese insurers including Taikang Life Insurance Co, New China Life Insurance Co and China Reinsurance Corp, also redoubled their efforts to launch their IPOs, industry sources said.
