Groupama China Converts into Sino-French JV

The China Insurance Regulatory Commission, the insurance industry regulator, just approved Aviation Industry Corporation of China to inject CNY 250 million into Groupama (China) Limited to hold a 50% stake, thus converting Groupama (China) into a 50/50 Chinese-French joint venture insurer from a wholly French-owned insurer.

The insurer's registered capital thus will be replenished to CNY 500 million. Groupama (China) was incorporated on December 31, 2010 through a conversion of Groupama SA Chengdu Branch.

Groupama SA Chengdu Branch was established in October 2004 as the first foreign property insurer in southwest China's Sichuan province as well as one of the four specialist agricultural insurers in China.

The insurer mainly provides agricultural insurance products and services and also operates property insurance for small- and medium-sized enterprises.

As at the end of 2010, Groupama (China) had a solvency ratio of 501.29%. It obtained CNY 13.07 million premiums in the first four months of 2011, down 7% year on year.