The China Insurance Regulatory Commission (CSRC) has approved the set up of a life insurance joint venture in China by US-based Prudential Financial and Chinese conglomerate, Fosun Industrial Technology Development.
The JV, aimed at tapping the CNY1 trillion ($156bn) Chinese life insurance market, would be set up within the next 12 months with Prudential holding a stake at 50%, in lieu with local regulations.
The venture follows a $500m third-party investment in January by Prudential in a private equity fund managed by Fosun.
The Chinese life insurance market, currently dominated by China Life and Ping An, also includes 28 foreign companies with the major being HSBC, Axa and Allianz.
Fosun also formed a private equity venture with US buyout firm, Carlyle Group, in a move to increase its expansion into the financial industry, Reuters reported.
The Chinese conglomerate, with businesses ranging from pharmaceutical to retail and media, has also acquired a 0.9146% stake in New China Life Insurance and a 17.2% stake in Yong An Insurance.