HONG KONG (Reuters) – ZhongAn Online Property and Casualty Insurance Co Ltd [IPO-ZAOL.HK] skeleton to supplement life word and other medical products to a operation of policies China’s initial internet-only insurer offers to accelerate a enlargement after going open in Hong Kong.
The company, founded by Alibaba (BABA.N) Executive Chairman Jack Ma, Tencent (0700.HK) Chairman Pony Ma and Ping An Insurance Group (2318.HK) Chairman Ma Mingzhe also skeleton to offer a record to insurers inside and outward of China, it pronounced on Sunday.
ZhongAn is charity 199.3 million new shares in an demonstrative operation of HK$53.70 to HK$59.70 each, putting a initial open charity during adult to HK$11.9 billion ($1.52 billion). Japan’s SoftBank Group Corp (9984.T) concluded to buy a interest of only next 5 percent in ZhongAn as a cornerstone financier in a IPO, investing about $550 million.
“This is a good matrimony for a association in a clarity that this is a really strategic, idealist financier and they’ve finished a lot of investigate into a company. Softbank is really a really clever stamp of approval,” Chief Financial Officer Francis Tang pronounced during a news conference.
SoftBank could make a investment by SoftBank Vision Fund, a world’s largest private equity fund, or other affiliates, ZhongAn said.
The association skeleton to use a new supports to accelerate a collateral bottom and cope with a 70 percent swell in sum created premiums in a 3 months finished Mar 2017, compared with a same duration final year.
“We are during a fast-pace enlargement stage, so we wish to make certain that we have a sufficient collateral given as an word association we have to have a clever collateral bottom to do some-more business,” Tang said. “So when we see some-more business entrance in, we wish to make certain this won’t turn a bottleneck.”
The association has sole some-more than 8.2 billion policies to some 543 million people given a pregnancy in 2013 in 5 areas: travel, health, consumer finance, automobile and lifestyle consumption, where it started by insuring shipping earnings during e-commerce hulk Alibaba’s online marketplace.
ZhongAn is requesting for a permit to offer life word products, Tang said, though giving an approaching timeline for approval. It already offers 262 opposite forms of word products and wants to supplement some-more within a 5 core areas.
“We can serve rise a abyss and extent in any of them,” Tang said. “We’re looking some-more during a pain points when we control your daily activities on a Internet … what kind of protections do people need? We wish to residence those.”
ZhongAn also skeleton to acquire some-more in entrance years from a sale of a record to other insurers and partners within China and abroad.
“This is how we wish to see the expansion, not only outward China, though also inside China,” Tang said.
($1 = 7.8188 Hong Kong dollars)
Reporting by Elzio Barreto, modifying by Louise Heavens