Ping An Insurance (Group) Co, China's second-largest insurer, is seeking to bring its banking and asset management businesses "on par" with insurance, as banks prepare to enter the industry.
The insurance giant announced in March it will buy half the asset-management arm of Belgium's Fortis for 2.15 billion euros (US$3.4 billion) as it diversifies its sources of revenue because Chinese banks are set to buy stakes in insurance companies.
"Once Chinese banks start investing in insurance companies, this will exert pressure on insurers in the longer term," Ping An Chairman Peter Ma told shareholders yesterday at a meeting in Shenzhen, where the company is based.
"Ping An has to tap the potential of banks, and plans to make our banking and asset-management units on par with our insurance business over a period of five to eight years," Ma pointed out.
Income from banking and insurance premiums at Ping An has "exceeded expectations" so far this year, President Louis Cheung said.
The insurer has investments in China Minsheng Banking Corp and Shenzhen Commercial Bank.
(Shanghai Daily July 18, 2008)
