China Insurance Regulatory Commission, Measures for the Administration of Insurance Group Companies (Trial Implementation)

中国保险监督管理委员会保险集团公司管理办法 (试行)

May 13, 2010 | BY

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CIRC sets forth the measures for the establishment of insurance group companies.

Clp Reference: 3910/10.03.12 Promulgated: 2010-03-12 Effective: 2010-03-12

Issued: March 12 2010
Effective: as of date of issuance
Interpreting authority: China Insurance Regulatory Commission

Applicability: For the purposes of these Measures, the term “insurance group company” means a company established with the approval of the China Insurance Regulatory Commission, that is lawfully registered, has the words “insurance group” or “insurance holding” in its name and exercises control or joint control and a material influence over the other members in the insurance group.

The term “insurance group” means a cluster of enterprises, the main business of which is insurance business, composed of an insurance group company and the companies subject to its control or joint control and material influence, and, in that enterprise cluster, there are two or more subsidiaries that, in addition to the insurance group company, are insurance companies.

The term “members of an (the) enterprise group” means the insurance group company and the companies subject to its control or joint control and material influence.

Main contents: An insurance group company may be established in either of the following manners:

(1) the shareholders of the insurance companies, as promoters, use their equity in the insurance companies and cash as capital contributions in establishing the insurance group company; the total amount of the capital contributions made in cash may not be less than 30% of the insurance group company's registered capital; or

(2) an insurance company is converted into, and its name changed into that of, an insurance group company, the insurance group company contributes capital in the form of cash to establish insurance subsidiaries and insurance business of the original insurance company is transferred in accordance with the law to the insurance subsidiaries.

Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21; and PRC Insurance Law (Amended), Feb 28 2009, CLP 2009 No.3 p.35

clp reference:3910/10.03.12prc reference:保监发 [2010] 29号promulgated:2010-03-12effective:2010-03-12

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