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(Alliance News) - Prudential PLC on Wednesday said that, together with its local partner, it has invested an additional CNY2.5 billion, about USD351 million, into a life insurance joint venture in China.
Prudential and Citic Financial Holdings Co Ltd each will invest a further USD176 million in cash into CITIC-Prudential Life Insurance Co Ltd, their 50-50 joint venture. As a result, CPL's registered capital will increase to CNY4.86 billion, about USD682 million, from CNY2.36 billion.
Prudential, a London-based, Asia-focused insurer, said the capital increase reflects the belief of both partners in "the attractive long-term prospects of life insurance business in the Chinese mainland".
"CPL plays a pivotal role in our overall strategy and growth," explained Prudential Chief Executive Officer Anil Wadhwani, "and we will continue to focus on delivering our customer-led and multi-channel distribution strategy in the Chinese mainland.
"This includes the development of whole life protection products and retirement solutions to address customers' needs at different life stages, as well as further enhancing our professional high-quality agency force and expanding the bancassurance network."
Prudential shares were up 1.2% to 873.60 pence in London on Wednesday morning. Citic Ltd, part of the Citic group, closed up 0.5% to HKD7.42 in Hong Kong.
By Tom Waite, Alliance News editor
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