Millea Holdings
of Japan said in late June it would pay Yn 1,06bn for a 24.9 per cent hold-ing in Shanghai-
based Sino Life Insurance. This is the maximum foreign ownership allowed under curtent
rules, although the proportion will be relaxed as part of China's deal to join the World Trade
Organisation. The purchase is being made through Millea subsidiaries Tokio Marine & Fire
Insurance and the Singapore-based Millea Asia.
Sino Life said regulatory approval
had been eranted tier the deal. It was announced a month after Asia General Holdings of
Singapore bought a 5 per cent stake in Mm-sheng Life. Sino Life, Minsheng Hengan Life
Insurance and Oriental Life Insurance were approved for formation in November 2000 as
China sought to bolster its insurance sector ahead of membership to the
WTO.
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