CIRC to allow China Pacific to buy 20% stake in Changjiang Pension

Nov. 4, 2009 (China Knowledge) - China Pacific Insurance (Group) Co<601601>, the country's third-largest life insurer by premiums, obtained approval from the China Insurance Regulatory Commission to buy 113.5 million shares or a stake of about 20% in Changjiang Pension Insurance Co, according to a statement released by the CIRC yesterday.

China Pacific announced on May 4 that China Pacific Life Insurance Co, the fully-owned life insurance unit of the group, will spend RMB 170 million buying the stake from Shanghai International Group Co, the biggest shareholder of Changjiang Pension Insurance, and will subscribe 219 million additional shares at RMB 1.5 apiece through private placement.

After the two deals, the group will hold a 51% stake in Changjiang Pension Insurance and will be the controlling shareholder of the pension insurance firm. Previously, the group held 75.5 million shares through its subsidiary Pacific Asset Management Co Ltd.

The acquisition will help China Pacific expand into the pension insurance market in China.

China Pacific's net profit in the third quarter of this year surged 203.7% year on year to RMB 1.7 billion, boosting its total net profit for the first nine months to RMB 4.06 billion, a level 4.8% than a year earlier.