Fosun, Prudential announce insurance joint venture
Chinese financial conglomerate Fosun Group and Prudential Financial have announced their life insurance joint venture, the first such partnership between Chinese and foreign parties since 2008. Fosun and Prudential – known outside the US as Pramerica – will each take a 50% interest in the company, which will have $78 million in initial registered capital.
It is expected to start operations in the fourth quarter of next year, The Wall Street Journal reported.
The joint venture received approval from the China Insurance Regulatory Commission in August. It marks the second collaboration between Fosun and Prudential, following the announcement of a $600 million private equity fund in January. Prudential invested $500 million in the fund and acts as the LP, while Fosun put in $100 million and operates as the GP. The fund was deployed in April.
Although China's life insurance business is lucrative, foreign players have struggled as a result of problems with joint venture partners as well as administrative and regulatory obstacles. This has allowed local providers to build a market position thought to be unassailable - foreign joint ventures account for about 5% of China's life insurance market by premiums and 1% of property and casualty insurance.
Fosun has traditionally focused on real estate, pharmaceuticals and mining, but has sought to widen its business to incorporate interests in private equity and financial companies. Earlier this year it launched a $100 million renminbi-denominated fund with The Carlyle Group, having previously teamed up with the US buyout firm to invest in dairy company Guangdong Yashili Group.
Fosun also invested in Euronext-listed Club Méditerranée (Club Med) alongside A Capital Asia, picking up a 7.1% stake in the business.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.