BoCommLife Assurance CNY300mn Capital Increase Agreed

BoCommLife Assurance Company Ltd., the first insurance firm in which a bank takes a controlling stake, has gained the regulatory approval of increasing capital by CNY 300 million from the China Banking Regulatory Commission.

And now, the Sino-foreign joint venture is pending for approval from the China Insurance Regulatory Commission.

The insurance venture formally was China CMG Life Insurance Company Ltd., in which China Life Insurance Co., Ltd. (SHSE: 601628, SEHK: 2628), the largest life insurance firm in the nation by premium, and Commonwealth Bank of Australia took 51% and 49% shares, and had registered capital of CNY 200 million, due to horizontal competition between China Life and the joint venture, the 51% stake held by China Life was sold to Bank of Communications (BoCom, SHSE: 601328, SEHK: 3328), a leading commercial lender in China, and the rest 49% stake was held by CMG Group under the wing of the foreign bank. The Chinese and foreign shareholders will inject additional CNY 212 million and CNY 88.25 million into the venture, lifting their holding to 62.75% and 37.25%, respectively.