FAW PLANS MOTOR INSURER

China-based Faw Group Corp, a Chinese vehicle manufacturer, is to create a motor insurer capitalised at 260m yuan ($34.4m) via various subsidiaries. FAW Car Co, Tinajin FAW Xiali Automobile Co, Changchun FAW Sihuan Automobile Co and FAW Finance will partner with Jilin Yian Insurance Brokers Co, plus one or two more as yet unnamed investors, to establish a specialist motor company in Beijing. Each of the four subsidiaries will put in 52m yuan for a 20% stake. Jilin Yian will invest 5m yuan for a 1.9% stake. FAW Group said that the new company will operate primarily in motor vehicle, property, liability, credit & guarantee, short-term health and related reinsurance. However, it will be FAW’s position in the local motor industry that will drive most sales.