ZTO Joins Consortium to Establish Logistics Insurer

By a News Reporter-Staff News Editor at China Weekly News -- ZTO Express (Cayman) Inc. (NYSE: ZTO) ("ZTO" or the "Company"), a leading express delivery company in China, announced that it has joined a seven-member consortium (the "Consortium") to establish a logistics insurer. In addition to ZTO, the consortium will consist of STO Express Co. Ltd., Yunda Holding Co. Ltd., Guangzhou Baogong International Freight Agency, Jiangxi Financial Holding Group, Shandong Jingjin Holding Group, and Shanghai YTO Jiaolong Investment Development (Group) Ltd.

The logistics insurer is expected to have registered capital of approximately RMB1 billion. ZTO plans to invest approximately RMB160 million and take a 16% stake in the insurer.

China's express delivery industry has experienced rapid growth in recent years but traditional insurance providers do not provide products specifically tailored to cover basic risks in the logistics sector. ZTO is jointly establishing the logistics insurer with some of its peers in the express delivery industry to fill in the gaps created by traditional insurance providers. The logistics insurer is expected to offer a wide variety of customized products including transportation, property, vehicles, liability and accident insurance. The establishment of the logistics insurer is still in the preliminary stages and is subject to the approval from China's insurance regulator and the entering into of definitive transaction documents.

Keywords for this news article include: Asia, China, ZTO Express Cayman Inc, ZTO Express (Cayman) Inc..

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC