3 Insurers' Equity Transfer Plans Approved

The China Insurance Regulatory Commission (CIRC) has agreed equity transfer plans of three insurance companies, such as Chang An Property & Liability Insurance Ltd., Bohai Property Insurance Company Ltd., and Du-Bang Property & Casualty Insurance Company Ltd.

The equity transfer of Du-Bang Property & Casualty Insurance has been concerned most. According to the approval by the CIRC, after the share transfer, Zhejiang-based shareholders will withdraw from the property insurance firm, while several state-owned companies based in Jilin will take over the stake, which will drive all shareholders of the target company to be from Jilin.

An anonymous person at Du-Bang Property & Casualty Insurance said the injection by the three Jilin-based state-owned companies will be a good thing for the company's operation. After that, Du-Bang will address the solvency problem next step. According to the annual report for 2010, net profits arrived at CNY 126.5 million, but the solvency adequacy rate is negative 61%.