China's first reinsurance brokerage firm set up

Jiang Tai Insurance Brokers Co Ltd on Monday signed a deal with US brokerage company Arthur J. Gallagher & Co (AJG) to set up a reinsurance brokerage company in Shanghai, the first one in China.

With a registered capital of 50 million yuan ($7.94 million), the newly established Jiang Tai Reinsurance Brokers Co Ltd will be located in the Shanghai Free Trade Zone.

Jiang Tai Insurance Brokers Co Ltd has a 51 percent stake in the new company, AJG 24.9 percent and Jiang Tai Tiandi Investment Co Ltd the remaining 24.1 percent.

The new company is expected to open to business in March next year. Currently, Europe, North America and Asia are the three major markets for reinsurance companies. And more than half of the reinsurance business is arranged through insurance brokerage companies.