China Taiping Consolidates Subsidiaries, Rules Out Acquisitions

China Taiping Insurance (HK) Co. Ltd. said it will seek to generate profit in the coming two years and support the long-term business development of its ultimate holding company, China Taiping Insurance Group Co. [55742], in China without reliance on acquisitions.

Peng Wei, vice president of China Taiping Insurance Group and vice chairman of China Taiping Insurance (HK), said at a conference in Hong Kong that China Taipei (HK) has no plan for mergers and acquisitions next year, but will preliminarily focus on realizing overall profit through its 18 provincial branches and sub-branches in China by 2011, then expand its Chinese branches.

Peng also said that when the company considers its investment portfolio, it would evaluate the security, liquidity and return on investments. The company will also focus on related regulatory issues. He added that currently, more than 60% of the insurer's investment portfolio is in bonds.

Although the company saw market demand for nonlife policies in renminbi (or yuan, the Chinese currency) increasing, Cheng Kwok Ping, vice chairman and chief executive officer of China Taiping (HK), said the company is not in a hurry to issue renminbi policies in Hong Kong.

Peng said the company will continue to study the feasibility of introducing renminbi policies based on government regulations and market demand.

China Taiping (HK), formerly known as Ming An Insurance Co. (HK), is a nonlife insurer that was established in Hong Kong in 1949, and has registered capital of HK$3 billion (US$387 million).

Ming An (Holdings) Co. Ltd. [55447] is the holding company of China Taiping (HK) and has been listed on the Hong Kong stock exchange since December 2006.

To manage business development and obtain the realization of synergies of the group's business, China Taiping Group said it decided to privatize Hong Kong-based Ming An Holdings through another listed company, China Taiping Insurance Holdings [51286].

Upon completion of the privatization, China Taiping Insurance Holdings becomes the 100% direct controlling shareholder of nonlife insurer Ming An Holdings.

The last trading day of Ming An's shares on the exchange was Oct. 21, with the closing price of the shares that day at HK$2.45. It was delisted from the Hong Kong stock exchange on Nov. 2 (BestWire, Nov. 2, 2009).

China Taiping (HK) was rebranded to its current name in line with the strategy of its ultimate holding company, China Taiping Insurance Group Co., to use a united group brand name.

China Taiping (HK) has 18 provincial branches and 63 sub-branches in China.

(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com)