China Reinsurance (Group) Co.,Asia’s largest reinsurer, is planning an investment strategy in the near term ahead of its planned initial public offering.
China Reinsurance had planned to complete a multibillion-yuan share listing in the middle of 2008, but the plan was postponed because it incurred losses last year and the domestic and offshore equity markets weakened due to the financial crisis.
“To introduce a strategic investor is an important part of China Reinsurance’s long-term development plan,” Chairman Liu Feng said in a statement on the company’s Web site Wednesday.
Liu said China Reinsurance aims to diversify its operations and become a comprehensive financial services group, but he didn’t name any possible investors.
In addition, “the company will seize an optimal opportunity to realize its goal of listing shares at home and abroad,” Liu said, without providing any timeframe.
China Reinsurance had a pre-tax profit of CNY3.183 billion (US$466 million) in the first half ended June 30, compared to its CNY4.91 loss in the year-earlier period, the statement said.
As part of efforts to improve earnings, the company plans to make equity investments in non-insurance sectors, such as infrastructure projects, public-service facilities, and the banking and real-estate industries, the statement quoted Liu as saying.
China Reinsurance, which is 85.5%-owned by Central Huijin Investment Ltd., the investment arm of China’s US$200 billion sovereign-wealth fund, will increase its overseas investments, the statement said, without providing details.
Source : Dow Jones Newswire
