Aviva-COFCO Approved for CNY200 Mn Capital Increase

Aviva-COFCO Life Insurance Co. received approval of China Insurance Regulatory Commission for CNY 200 million capital increase with two shareholders' stakes unchanged.

The insurer, a joint venture between European insurance company Aviva and China's food conglomerate COFCO, will have its registered capital expand from CNY 2.546 billion to CNY 2.746 billion.

It replenished its capital by up to CNY 480 million in 2010 so that its solvency could meet the fast business growth. As at the end of 2010, Aviva-COFCO Life Insurance's solvency ratio was 167.2%, down 28.92% year on year. Last year's net profit reached CNY 218 million, representing a year-on-year increase of 62 million.

Since it started operation in January 2003, the Beijing-headquartered life insurance joint venture has built presence in over 40 major cities of 11 provinces like Guangdong, Beijing, Sichuan, Fujian, Shandong, Hunan, Hebei, Jiangsu, Liaoning, Hubei and Henan, topping foreign life insurers in China.