Shanghai Life readies for debut in FTZ

China's insurance regulator has approved Shanghai Life Insurance Co to be registered as the first large-scale financial institution in the city's free trade zone as it continues to boost financial services and innovation.

With a registered capital of 2 billion yuan (US$325 million), the insurer is co-invested by a consortium of eight state-owned and private companies — Lanhai Holding Co, China Shipping Co, Shanghai Electric Power Generation Group, Chengtou Holding, Shanghai International Group, Shanghai Waigaoqiao Free Trade Zone Development Co, Shanghai Lujiazui Finance Development Co and Powerlong Group.

The investors have the green light from the China Insurance Regulatory Commission to start working on setting up Shanghai Life, the insurer's preparatory committee said in an e-mail statement yesterday.

The consortium is led by Lanhai Holdings, a real estate developer affiliated to private company Shanghai Zhong Ying Enterpreses (Group) Co.

Insurance companies usually have up to six months to prepare and the CIRC will assess the results before allowing the insurer to start operation.

Tapping the financial reform measures in the FTZ, the new insurance company will offer both insurance and asset-management services, according to the statement. It will also offer traditional life insurance and health insurance products as well as help arrange related medical services.

Backed by the Shanghai government and the local insurance regulator, Shanghai Life is the result of a State Council call for more private capital in insurance and for mixed ownership.