A new state-backed agricultural reinsurer has been approved by China’s banking and insurance regulator, according to reports from Xinhua News Agency and Reuters.
The company is reported to have been established with $2.34 billion in registration capital.
Among the nine shareholders to have co-established the reinsurer are the Ministry of Finance, China Reinsurance Group Corp, and Ping An Property & Casualty Insurance Co.
State-backed Xinhua News Agency says the firm will look to help expand the insurance coverage of catastrophe losses while safeguarding the country’s agricultural production.
According to analysis from a Swiss Re Institute report, China’s insurance industry is performing robustly, with premium growth returning quickly to its pre-pandemic trend rate.
The reinsurer expects China’s insurance industry growth to be the strongest worldwide in 2020, and believes double-digit growth in the country will resume in 2021.