Banking Insurers Record Bright Performance

Insurance companies with equities held by banks in China racked up robust growth last year and they are expected to maintain bright performance this year depending on majority banking shareholders.

Sun Life Everbright Life Insurance Co., Ltd. gained CNY 5.106 billion in premium revenue in 2010, expanding by CNY 3.612 billion or 243 percent over a year earlier; the growth rate was far higher than the average of the sector.

The China Insurance Regulatory Commission approved Sun Life Everbright Life Insurance to increase capital and change equity structure on July 20 last year. Its registered capital was raised to CNY 3 billion and paid-up capital came to CNY 3.277 billion, taking leading positions among home life insurers.

ING-BOB Life Insurance Co., Ltd., taken control by Bank of Beijing (SHSE: 601169), recorded a growth rate of 50 percent last year. Both shareholders determine to rack up a business growth of 40 percent this year.

The opportunities from insurance's rapid development make more banks intend to have interest in insurers. Disclosures by public lenders indicate that four banks have filed with the commission for buying into insurance companies.