Sinatay Life Insurance Wins Nod for Capital Increase

The China Insurance Regulatory Commission just approved of the capital increase of Sinatay Life Insurance Co., Ltd. by CNY 22 million, its second capital increase this year.

The Hangzhou-headquartered life insurer's registered capital will be replenished to CNY 1.49 billion. Following the capital increase, state-owned Juhua Holding Co. and Zhejiang Yongli Industrial Group Co.'s stake in Sinatay Life Insurance will both be diluted to 19.38% from 19.68%, maintaining to be the largest shareholder. Mitsui Sumitomo Insurance Company, Limited will additionally buy 22.6254 million shares of Sinatay Life Insurance to raise its stake to 7% from 5.57%.

The Sino-Japanese life insurance joint venture has opened eight branches in Zhejiang, Jiangsu, Beijing, Hebei, Fujian, Henan, Shandong and Heilongjiang. With rapid growth in recent years, it won regulatory approval on May 20 to issue CNY 450 million subordinated bonds to replenish the capital base.

The company obtained CNY 2.145 billion premiums in 2010, nearly doubling that a year ago. The growth pace far beat the average 30% pace in China's life insurance industry.