Ping An granted PE investment license

Sources last month told AVCJ that China Life, the country's largest insurer, was the to be granted such licenses, but local reports aver that Ping An beat its rival to be given the license.

Shanghai Securities News reported that Ping An may invest up to RMB110 billion ($17.2 billion) in the two asset classes. The license allows insurers to invest up to 5% of their total assets in private equity investments, and 10% in real estate.

Insurance companies have been allowed to invest in private equity since August 2010, but deals required approval on a case-by-case basis. Now, by allowing companies to access different asset classes, regulators hope to boost returns on investment and also channel more money into the private sector, thereby sustaining economic growth.

Shenzhen-headquartered Ping An claimed RMB1.17 trillion in assets by year end 2010. The Hong Kong-listed company is 16.8%-owned by HSBC, which is its largest shareholder. Until one year ago, TPG was also a major stakeholder.

By contrast, China Life claimed insurance premiums of RMB350.6 billion at the end of 2010 and total assets of RMB1.77 trillion.

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• Topics
• Greater China
• Financing
• TPG Capital