Press Releases
MSI invested in Chinese Life Insurer
April 6, 2010
Mitsui Sumitomo Insurance Co., Ltd.
Mitsui Sumitomo Insurance Company, Limited ("MSI") (President: Yasuyoshi Karasawa) resolved to acquire a seven-percent stake (approximately equivalent to 2,400 million yen) in Sinatay Life Insurance Co., Ltd. ("Sinatay"), a Chinese life insurer, and has obtained a permit from the China Insurance Regulatory Commission ("CIRC") on March 30.
This acquisition represents part of MSI's policy of strong push into overseas and life insurances businesses made under one of its major strategic initiatives for its sustainable corporate growth.
In addition to this capital participation, MSI will send a non-resident director to participate in the management of the investee. MSI will also consider increasing its stake according to the development of the Chinese market and Sinatay's business growth in the future.
Going further beyond this investment in Sinatay, MSI is seeking to expand business in both non-life and life insurance markets in China, where robust economic growth is expected.
1.Outline of the investment (capital participation)
| Investee: | Sinatay Life Insurance Co., Ltd. |
|---|---|
| Stake in equity: | 7% (approximately equivalent to 2,400 million yen) |
| Payment: | (Scheduled in) April 2010 |
| Others: | One non-executive director to be sent from MSI |
- Sinatay Life Insurance Co., Ltd. at a glance -
| English name: | Sinatay Life Insurance Co., Ltd. |
|---|---|
| Established in: | May 2007 |
| Head office: | Hangzhou city, Zhejiang province |
| Representatives: | Chairman Ma Jia, President CEO Zheng QiuGen |
| Capital: | 600 million yuan (approximately equivalent to 8,200 million yen before this investment) |
| Number of Employees: | Approximately 1,500 persons |
| Annual premium revenues: | Approximately 1,100 million yuan (approximately equivalent to 15,200 million yen earned in 2009) |
2.Background to and reasons for the investment
- (1)The life insurance market in China has a great potential not only because of its population of 1.3 billion but penetration rate of life insurance remaining still as low as 1.8% (as measured by the ratio of life insurance premiums to GDP in 2007). The market is expected to be expanding, riding on the growing national economy. It has actually grown 20.1 percent in premium revenues on a compound annual growth rate basis for the past five years.
- (2)Sinatay is one of the promising local life insurers, holding a license for nation-wide operation. In addition to its currently operating head office in Hangzhou city, Zhejiang province and eight branches, it plans to extend the office network to other provinces.
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