Asia > Eastern Asia > China > Li Gang, deputy chairman of Evergrande's board,

China: Li Gang, deputy chairman of Evergrande's board,

2015/11/30

Evergrande Group says it has bought half of a joint venture insurance company, a move a person close to the developer says is aimed at helping it explore the financial sector.

Evergrande held a press conference on November 22 to announce the transaction for Great Eastern Life Assurance (China) Co. Ltd. (GELC). The insurer's name was changed to Evergrande Life Insurance Co. Ltd.

The source close to the firm said Evergrande paid Chongqing Land Group and Chongqing City Construction Investment (Group) Co. Ltd. 3.9 billion yuan for the 50 % stake in the insurer.

The China Insurance Regulatory Commission has approved the transaction, the person close to Evergrande said.

GELC was set up in June 2006 by Singapore's Great Eastern Life Assurance Co. Ltd. and Chongqing Land Group, with each owning 50 %. In August 2013, Chongqing City Construction Investment and Chongqing Casin Group Co. Ltd. took one-quarter stakes in the insurer.

GELC has suffered losses in the completed two years, its financial reports show. It reported assets of 3.7 billion yuan and debts of 3.1 billion yuan as of the end of June.

Evergrande saw the transaction as a way to get a license for the insurance business, said the source, who added that the developer plans to build the insurer into a platform for it to explore businesses in the financial sector.

Li Gang, deputy chairman of Evergrande's board, was appointed to lead the financial sector business in October, the person close to the developer said. Li before worked at Ping An Insurance Group Co. and Funde Sino Life Insurance Co. Ltd.

GELC's boss, Zhao Dongmei, will be the chairman of Evergrande Life, the source said. Li Ping, the former general manager of Founder Meiji Yasuda Life Insurance Co. Ltd., will be the general manager.

Evergrande Life may be a new company but it has by presently gotten involved in some controversy, at least in the sporting arena. The company's name appeared on November 21 on the front of the jerseys worn by members of the Evergrande Taobao soccer team at the same time as it beat the United Arab Emirates to win the Asian league.

The ad caused a dispute between Evergrande and the automaker Dongfeng Nissan, which said it had a transaction with the developer to have its name on the shorts until January 31 next year.

Evergrande said that it told the automaker it was making the change for the soccer team's final of the year, but Dongfeng Nissan said it at no time agreed to that.

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