Two Shareholders Withdraw from Eastern Life Insurance

The China Insurance Regulatory Commission (CIRC) just approved two corporate shareholders of Eastern Life Insurance Co., Ltd. to withdraw from the insurer.

With the approval, Inner Mongolia Dalinhar Investment Co. will transfer 50 million shares of Eastern Life Insurance to Beijing New Auto Group and transfer 20 million shares to China Tobacco Hunan Industrial Company. In the meantime, Jiangsu Xingcheng Group Co. will transfer all of its 70 million shares of the life insurer to China Tobacco Hunan Industrial Co.

Then Beijing New Auto Group will hold 50 million shares of or a 6.25% stake in Eastern Life Insurance Co, and China Tobacco Hunan Industrial Company will own 90 million shares or 11.15% stake.

Eastern Life Insurance, founded in 2001 with registered capital of CNY 800 million, was asked to suspend operation in August 2004 as its actual controller Delong Group collapsed. It once applied to the CIRC to resume operation, without success.

The approval stake transfers can facilitate its restructuring, said analysts.