China Construction Bank has partnered with Taiwan-based China Life Insurance to invest in Pacific Antai Life Insurance, a Shanghai-based insurance venture between China and Taiwan.
Construction Bank has increased its stake in Pacific Antai to 51% by purchasing additional 1% stake, becoming the biggest shareholder in the Chinese insurer, according to the Bloomberg.
Reportedly, the China Life Insurance plans to pay $57m for a 19.9% stake in the Pacific Antai. Both the firms bought the shares from China Pacific Insurance, which held a 50% stake in Pacific Antai.
In order to develop its life insurance business in China, China Life Insurance anticipates to use the network and client base of Construction Bank.
Initially a year ago, a 50% stake of Pacific Antai from ING Groep has been acquired by the Construction Bank, which plans to rename Pacific Antai as Jian Xin Life Insurance Co.
Formerly an insurance venture between ING and China Pacific Insurance, Pacific Antai had more than 300,000 policy holders and 3.7bn yuan of assets by the end of 2009.