PICC LIFE MAJORITY STAKEHOLDER TO INCREASE OWNERSHIP SHARE

China-based PICC Holding Co, which owns 51% of PICC Life, is looking to increase its stake in the life company, reports SinoCast . Wu Yan was reported to have been in talks with foreign stakeholders with the intent of reducing the foreign shareholding level to be low 20%. PICC Life was launched in late 2005 with a capitalisation of 1bn yuan. Its foreign backers were Japan-based Sumitomo Life, which has a 29% stake; Asia Financial Holdings, with a 10% stake; and Bangkok Bank, also with a 10% stake. One reason for PICC Life wishing to regain some of the foreign shareholding is that this would ease its path with the regulator when applying to open more branches. Mr Wu, who only recently took over as head of PICC Holding, is looking to set up provincial branches throughout China. The problems for PICC Holding, according to the report, include the cost — nearly 1.5bn yuan to obtain a 30% stake, and the willingness of the minority partners to sell. Sumitomo Life, in particular, sees PICC Life as its way in to the Chinese mainland, and already has a vice-president and 10 Japanese staff working for PICC Life.