Zurich Insurance, Baosteel to jointly buy 30.55 pct of New China Life - report
September 23, 2007: 06:19 AM EST
Sep. 23, 2007 (Thomson Financial delivered by Newstex) --
BEIJING (XFN-ASIA) - Zurich Insurance Co and Shanghai Baosteel Group Corp will jointly acquire a 30.554 pct stake in New China Life Insurance Co (NYSE:LFC) from China's insurance protection fund, the Economic Observer reported over the weekend.
To avoid possible legal or policy hurdles, Zurich and Baosteel will possibly find another partner to wrap up the deal, the newspaper said, citing a source familiar with the matter.
Zurich and Baosteel will retain controlling power, it said.
No further information was provided.
Zurich currently holds 20 pct stake in New China Life, while World Bank arm International Finance Corp and Japan's Meiji Life Insurance Co hold a combined 4.9
Shanghai Baosteel Group Corporation is China's largest iron and steel maker. (China is the world's leading steel producer.) Baosteel makes steel formed as billets, tubes, pipes, bars, and plates, and iron and tin products. Its markets include the appliance, auto, construction, oil, and shipbuilding industries, both in China and abroad. Baosteel produces more than 20 million tons of steel annually. Its metallurgical activities are supported by more than 20 subsidiaries and affiliated companies, including operations in construction, finance, information technology, international trade, real estate, and transportation. Baosteel is state-owned.
Zurich Insurance Co., SA Ltd., formerly South African Eagle Insurance Co., Ltd., conducts all classes of short-term insurance business in South Africa. Its specialist products include marine, engineering and aviation insurance. It offers several niche products, including risk financing with cell captive facilities; the SA Eagle Legal Plan, which is a personal legal expenses insurance product; SA Eagle Legal Expenses Underwriting Managers; E-SCAPE, which is an electronic collection and payment system; SA Eagle Assist, which is a toll-free help line for emergencies, personal health, legal, tax and investment advice for domestic monthly and legal plan policyholders; SA Eagle Auto Assess, which assists policyholders for a minor accident claim; the Internet Monthly Policy , which offers brokers and agents a policy and claims management system via the Internet. It also offers products for the bed and breakfast industry, individuals or collectors of fine art, 4x4 owners, cyclists and bowlers.