M & A OF INSURANCE COMPANIES: APPROACH SELECTION AND MAJOR ISSUES

• Date: 24 May 2018
• Published date: 24 May 2018
• Citation: jd0130
• Author: Yuan Min,Lin Zhe

2020/11/17 M&A OF INSURANCE COMPANIES: APPROACH SELECTION AND MAJOR ISSUES | China Law Insight

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CHINA LAW INSIGHT

M&A OF INSURANCE COMPANIES: APPROACH

SELECTION AND MAJOR ISSUES

By King & Wood Mallesons on May 24, 2018

作者：袁敏 林喆 宋靖豪 赖云婕 金杜律师事务所金融资本部

On 11 April 2018, the Governor of the People’s Bank of China (“PBoC”), Yi Gang,

announced at the Boao Forum for Asia (“BFA”) that the 50% foreign ownership restriction

in the life insurance sector is to be lifted to 51% in the first half of 2018. In addition, it was

noted that complete liberalization of the life insurance sector (i.e. no foreign ownership

restriction) can be expected in three years’ time. On 27 April 2018, the China Banking and

Insurance Regulatory Commission (“CBIRC”) issued an announcement on accelerating

the implementation of measures regarding opening up the markets of banking and

insurance. The CBIRC stated in the announcement that the liberalization of the foreign

ownership in the life insurance sector as announced at the BFA would be implemented as

soon as possible. Given the scarcity of insurance licenses and the unique attributes of the

insurance business, mergers and acquisitions (“M&A”) of insurance companies have

always been chased after by the capital.