Pension fund buys PICC stake
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Shanghai Daily, June 22, 2011
China's national pension fund has invested 10 billion yuan (US$1.54 billion) for an 11 percent stake in the People's Insurance Co (Group) of China as the insurer seeks strategic investors ahead of its listing plan, PICC Chairman Wu Yan said Tuesterday.
The Social Security Fund bought the stake in the Beijing-based insurer, which plans a dual listing in Shanghai and Hong Kong.
"Attracting strategic investors is a must in the preparation for listing," Wu said in an e-mailed statement. "The insurer now qualifies for listing after restructuring and consolidation in the past few years."
The insurer will "prudently" choose its timing for its initial public offering, which requires regulatory approval, Wu said.
Zhou Shurui, chairman of PICC's supervisory board, said in May that the insurer had secured a 10 billion yuan investment from a strategic investor. Zhou did not name the investor at the time.
A share sale will help the state-owned insurance company replenish capital at business units, including PICC Property and Casualty Co.
Previously, PICC was wholly owned by the Ministry of Finance.
The insurance conglomerate has more than 10 affiliates.
