The main shareholders of startup Chinese mainland-based general insurer Tai Ping Insurance Co. said they would inject 500 million yuan (US$60.39 million) into the joint venture to help finance its planned expansion.

China Insurance (Holdings) Co. and its Hong Kong-listed unit, China Insurance International Holdings Co., would each put an additional 250 million yuan into Tai Ping Insurance's registered capital, bringing it to a total of one billion yuan, the companies said in a legal notice, Shenzhen Daily reported Tuesday.

Tai Ping Insurance, along with Tai Ping Life Insurance Co., is one of the main operating vehicles of the China Insurance group. The venture was launched in 2001, selling automotive insurance, marine and non-marine insurance, but has yet to turn a profit. Tai Ping Insurance had 12 branches as of 2003, but was approved to open three more this year and planned to establish another four "in the near future," the notice said.

As a result of the capital injection, China Insurance (Holdings) will increase its stake in Tai Ping Insurance to 47.525 percent from 45.05 percent, while China Insurance International will boost its holding to 40.025 percent from 30.05 percent.

Another shareholder, Industrial & Commercial Bank of China (Asia) Ltd., will not inject any additional capital, cutting its stake to 12.45 percent from 24.90 percent. However the other two companies have granted it an option to later buy enough shares in Tai Ping Insurance to bring its stake back up to 24.90 percent.

ICBC Asia is the Hong Kong-listed arm of Industrial & Commercial Bank of China, one of the four State-run commercial banks on the mainland.

Source: Shenzhen Daily-Agencies