Internet group Tencent and seven other China-based investors are committing RMB1.5bn ($217m) to a joint venture to create an online life insurance provider, Reuters reported today, citing a regulatory filing.
Tencent made the investment in HeTai Life Insurance Co through its Beijing Bizcom Technology subsidiary, and other investors include asset management firm Munsun Capital Group, which paid RMB210m for a 14% stake, as well as Citic Guoan and Beijing Easyhome Investment Holding Group.
HeTai received regulatory approval from the Chinese government in July this year and has a year to finish the preparation of establishment process, according to the Hong Kong stock exchange filing, which was made by Munsun.
Tencent is already an investor in another China-based online insurance concern, Xhong An, which it formed in 2013 with insurance firm Ping An and e-commerce group Alibaba’s financial services affiliate, Ant Financial.
Xhong An, valued at $8bn as of a June 2015 funding round, reportedly plans to raise up to $2bn in an initial public offering in Hong Kong. Tencent owns a 12% stake in the company.