SHANGHAI: China’s Dazhong Insu-rance aims to sell its stake in a mainland venture with Germany’s Allianz, trying to enhance its financial health before going for a public listing, a Dazhong executive said on Monday.
Dazhong was in talks with several companies to sell its 49% of Allianz Dazhong Life Insurance Co Ltd, a joint-venture which has been bleeding red ink since it started up in 1999, the executive, who is familiar with the negotiations, told Reuters.
Interested parties included Haitong Securities, automaker Shanghai Automotive Industry Corp, city investment vehicle Shanghai International Trust and Investment Corp and China Eastern Airlines.
The insurer wanted to launch an initial public offering (IPO) in the second half of this year, the executive added without elaborating.
Allianz Dazhong was set up in October 1998 with registered capital of 200 million yuan, after the world’s second largest insurer, which expects to return to the black after four loss-making quarters, won approval from regulators. It began selling policies in January 1999.
“Allianz Dazhong has still not turned a profit. If we persist with the losses, it will affect Dazhong’s ability to raise funds when we list later in the year,” the executive said. The venture had never shown a profit, he said. – Reuters
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