Measures for the Administration of Acquisitions and Mergers of Insurance Companies

Article 2: For the purposes of these Measures, the term “insurance company” means an insurance group (holding) company, insurance company or reinsurance company the establishment of which is approved by the China Insurance Regulatory Commission (the CIRC) and that is registered in accordance with the law.

第二条 本办法所称保险公司，是指经中国保险监督管理委员会（以下简称中国保监会）批准设立，并依法注册的保险集团（控股）公司、保险公司、再保险公司。

Article 3: Acquisitions and mergers of insurance companies must comply with laws, administrative regulations and CIRC provisions, and may not harm the lawful rights and interests of consumers of insurance or jeopardise the financial security of the state or the public interest.

第三条 保险公司收购合并必须遵守法律、行政法规及中国保监会的规定，不得损害保险消费者的合法权益，不得危害国家金融安全和社会公共利益。

Article 4: Where acquisitions and mergers of insurance companies involve matters such as access to the industry, filings of concentrations of business operators or transfers of state-owned equity, they shall require the approval(s) of the relevant state departments, and may only be carried out after the securing of such approval(s).

第四条 保险公司收购合并涉及行业准入、经营者集中申报、国有股权转让等事项，需要取得国家相关部门批准的，应当在取得批准后进行。

Article 5: Parties involved in acquisitions and mergers of insurance companies must provide true, accurate and complete information to the CIRC, and the same may not contain false records, misleading statements or material omissions.

第五条 保险公司收购合并的有关各方必须向中国保监会提供真实、准确、完整的信息，不得有虚假记载、误导性陈述或者重大遗漏。

Article 6: In acquisition or merger activities, the directors, supervisors and senior management personnel of insurance companies shall act in good faith and with due diligence, safeguard the safety of the insurance company's assets and protect the lawful rights and interests of the insurance company and all of its shareholders.

第六条 保险公司的董事、监事、高级管理人员在收购合并活动中应当诚实守信、勤勉尽责，维护保险公司资产的安全，保护保险公司和全体股东的合法权益。

Article 7: Accounting firms, professional valuation firms, law firms and other such professional intermediary service firms involved in acquisitions and mergers of insurance companies shall act with due diligence, and comply with industry codes and professional ethics.

第七条 会计师事务所、专业评估机构、律师事务所等专业中介服务机构在保险公司收购合并中应当勤勉尽责，遵守行业规范和职业道德。

Part Two: Acquisition

第二章收购

Article 8: For the purposes of these Measures, the term “acquisition” means the act whereby an acquirer obtains more than one-third of the equity of an insurance company at one time or cumulatively and becomes the largest shareholder of the insurance company; or the act whereby the acquirer, although it obtains less than one-third of the equity of the insurance company at one time or cumulatively, nevertheless becomes the largest shareholder of, and achieves control over the, insurance company.

第八条 本办法所称收购是指收购人一次或累计取得保险公司三分之一以上（不含三分之一）股权，且成为该保险公司第一大股东的行为；或者收购人一次或累计取得保险公司股权虽不足三分之一，但成为该保险公司第一大股东，且对保险公司实现控制的行为。

An acquirer includes the investor, its affiliates and persons acting in concert.

收购人包括投资人及其关联方、一致行动人。

Article 9: In an acquisition of an insurance company, the target insurance company shall submit an application to the CIRC together with the following materials:

第九条 保险公司收购应由被收购保险公司向中国保监会提出申请，并提交以下材料：

(1) a written acquisition application;

（一）收购申请书；

(2) the overall acquisition plan, including a feasibility study, the transaction structure, implementing steps, source of the funds, method of payment and subsequent arrangements;

（二）收购整体方案，包括可行性研究、交易结构、实施步骤、资金来源、支付方式、后续安排；

(3) the transaction price and an account of the basis of the pricing, and if a transfer of state-owned equity is involved, an asset valuation report, documentation evidencing the competent authority's consent to the transfer or investment and documentation evidencing the transfer by public listing shall additionally be submitted in accordance with relevant provisions;

（三）交易价格及定价依据说明，如涉及国有股权转让还应当按照相关规定提交资产评估报告、主管机构同意其转让或投资的证明材料、公开挂牌转让的证明材料；

(4) details on the participation in the contemplated acquisition by the investor, its affiliates and persons acting in concert;

（四）投资人及其关联方、一致行动人参与本次收购的情况；

(5) an account of the filing of the concentration of business operators or the relevant approval document;

（五）经营者集中申报说明或有关批准文件；

(6) the opinion issued by the professional intermediary service firm;

（六）专业中介服务机构出具的意见；

(7) if the acquisition is to be accomplished by way of an equity acquisition, the equity transfer agreement; if the acquirer is a new shareholder, the relevant materials specified in Article 28 of the Measures for the Administration of the Equity of Insurance Companies or Article 9 of the PRC Regulations for the Administration of Foreign-funded Insurance Companies (the Foreign-funded Insurance Company Regulations);

（七）采取受让股权方式的，应当提交股权转让协议，受让方为新增股东的，还应当提交《保险公司股权管理办法》第二十八条或《中华人民共和国外资保险公司管理条例》（以下简称《外资保险公司管理条例》）第九条规定的有关材料；

(8) if the acquisition is to be accomplished by way of subscription for additional equity, the relevant materials specified in Article 29 of the Measures for the Administration of the Equity of Insurance Companies or Article 9 of the Foreign-funded Insurance Company Regulations; and

（八）采取认购增发股权方式的，应当提交《保险公司股权管理办法》第二十九条或《外资保险公司管理条例》第九条规定的有关材料；

(9) other materials that the CIRC requests in accordance with the principle of prudential regulation.

（九）中国保监会根据审慎监管原则要求提供的其他材料。

Article 10: The decisions and measures taken by the target insurance company in respect of the acquisition shall be conducive to safeguarding the interests of the insurance company and its shareholders, and the insurance company's resources may not be used to provide the acquirer any manner of financial assistance.

第十条 被收购保险公司针对收购所做出的决策及采取的措施，应当有利于维护保险公司及其股东的利益，不得利用保险公司资源向收购人提供任何形式的财务资助。

Article 11: The period between the execution of the equity transfer agreement, capital contribution agreement or share subscription agreement and completion of transfer of title to the relevant equity or shares is the acquisition transition period. During the acquisition transition period, save to succour the insurance company if it is facing serious financial difficulties, the acquirer may not propose an election to replace the board of directors of the insurance company, and the target insurance company may not carry out an investment or a purchase or sale of assets that would have a material impact, or conduct a transaction with the acquirer or an affiliate thereof.

第十一条 自签订股权转让协议、出资协议书或股份认购协议起至相关股权或股份完成过户的期间为收购过渡期。在收购过渡期内，除为挽救面临严重财务困难的保险公司外，收购人不得提议改选保险公司董事会，被收购保险公司不得进行有重大影响的投资、购买和出售资产行为，或者与收购人及其关联方进行交易。

Article 12: Except in special circumstances such as risk disposal or a transfer between different entities controlled by the same controller, an acquirer shall undertake in writing not to transfer, for three years from the date of completion of the acquisition, equity or shares of the insurance company that it holds.

第十二条 除风险处置或同一控制人控制的不同主体之间的转让等特殊情形外，收购人应书面承诺自收购完成之日起三年内，不转让所持有的被收购保险公司股权或股份。

Part Three: Merger

第三章合并

Article 13: For the purposes of these Measures, the term “merger” means the merging of two or more insurance companies into one insurance company. An insurance company merger may take the form of a merger by absorption or merger by new establishment, provided that the provisions on the separation of business of Article 95 of the Insurance Law are not violated.

第十三条 本办法所称合并是指两家或两家以上保险公司合并为一家保险公司。保险公司合并可以采取吸收合并或者新设合并，但不得违反《保险法》第九十五条关于分业经营的有关规定。

Article 14: In an insurance company merger, the insurance companies proposing to merge shall jointly submit an application to the CIRC together with the following materials:

第十四条 保险公司合并应由拟合并的保险公司共同向中国保监会提出申请，并提交以下材料：

(1) a written merger application;

（一）合并申请书；

(2) the resolutions of the shareholders' meeting, shareholders' general meeting or board of directors of each of the parties to the merger;

（二）合并各方的股东会、股东大会或董事会决议；

(3) the merger agreement;

（三）合并协议；

(4) the overall merger plan, including the arrangement to protect the rights and interests of consumers of insurance, the claim and debt arrangement, the asset allocation and asset disposal plan, an account of the adjustment of the scope of business, the plan for integrating establishments, the résumés of the incumbent and proposed senior management personnel and the employee resettlement plan;

（四）合并整体方案，包括保险消费者权益保护安排、债权债务安排、资产分配和资产处分计划、业务范围调整说明、分支机构整合方案、现任和拟任高级管理人员简历、员工安置计划；

(5) an account of the filing of the concentration of business operators or the relevant approval document;

（五）经营者集中申报说明或有关批准文件；

(6) the opinion issued by the professional intermediary service firm; and

（六）专业中介服务机构出具的意见；

(7) other materials that the CIRC requests in accordance with the principle of prudential regulation.

（七）中国保监会根据审慎监管原则要求提供的其他材料。

Article 15: Within 10 days from securing CIRC approval, the parties to the merger shall notify their creditors, proposers and the insured or beneficiaries, and make an announcement in newspapers within 30 days.

第十五条 合并各方应当自取得中国保监会批准之日起十日内通知债权人和投保人、被保险人或者受益人，三十日内在报纸上公告。

Article 16: The claims, debts and policy liabilities of the parties to the merger shall be succeeded to by the surviving insurance company or the newly established insurance company.

第十六条 合并各方的债权债务和保单责任应当由存续保险公司或者新设保险公司承继。

Article 17: The scope of business after an insurance company merger shall be approved anew by the CIRC in accordance with relevant provisions.

第十七条 保险公司合并后的业务范围由中国保监会按照有关规定重新核准。

If the scope of business approved by the CIRC is narrower than the scopes of business of the parties to the merger, the parties to the merger shall, within six months after securing CIRC approval, transfer the relevant business to qualified insurance companies.

经中国保监会核准后的业务范围小于合并各方业务范围的，合并各方应当自取得中国保监会批准后的六个月内将相关业务转让给符合资质的保险公司。

Article 18: The existing establishments of the parties to the merger shall be succeeded to by the surviving insurance company or the newly established insurance company. After an insurance company merger, the number of establishments within the jurisdiction of a CIRC agency shall comply with relevant provisions of the Measures for the Administration of the Market Access of Establishments of Insurance Companies.

第十八条 合并各方原有分支机构由存续保险公司或者新设保险公司承继。保险公司合并后，在中国保监会派出机构同一辖区内的分支机构数量，应当符合《保险公司分支机构市场准入管理办法》的有关规定。

Part Four: Regulation

第四章监督管理

Article 19: The CIRC shall exercise regulation over acquisitions and mergers of insurance companies in accordance with the law.

第十九条 中国保监会依法对保险公司收购合并进行监管。

Article 20: When reviewing applications for acquisitions and mergers of insurance companies, the CIRC shall primarily consider the following factors:

第二十条 中国保监会在审核保险公司收购合并申请时，主要考虑以下因素：

(1) the impact on the surviving insurance company or the newly established insurance company as a going concern, including its solvency position, financial position and management capabilities;

（一）对存续保险公司或新设保险公司经营持续性的影响，包括偿付能力状况、财务状况、管理能力；

(2) the impact on the insurance industry, including fair competition in the insurance market, competitiveness of the insurance industry and risk disposal by insurance companies; and

（二）对保险行业的影响，包括保险市场公平竞争、保险行业竞争能力、保险公司风险处置；

(3) the impact on the lawful rights and interests of consumers of insurance, the financial security of the state and the public interest.

（三）对保险消费者合法权益、国家金融安全和社会公共利益的影响。

Article 21: Subject to the approval of the CIRC, an acquirer may, after the completion of an acquisition, control two insurance companies engaging in the same type of business.

第二十一条 经中国保监会批准，收购人在收购完成后可以控制两个经营同类业务的保险公司。

Article 22: Within the 12 months after an insurance company acquisition or merger, the insurance company shall, within the first 30 days of each quarter, submit a written report to the CIRC on matters such as investments, purchases and sales of assets that have a material impact, affiliated transactions, business transfers, insurance consumer disclosures, public announcements, changes in senior management personnel and resettlement of employees during the preceding quarter.

第二十二条 在保险公司收购合并完成后十二个月内，保险公司应当于每季度前三十日内，将上一季度有重大影响的投资、购买或者出售资产、关联交易、业务转让、保险消费者告知、社会公告、高级管理人员变更、员工安置等情况书面报告中国保监会。

Article 23: If a relevant party to an insurance company acquisition or merger fails to perform its reporting, announcement or disclosure obligations in accordance with provisions, or its reports, announcements or other such documents contain false records, misleading statements or material omissions, the CIRC has the authority to order it to rectify the matter, and take regulatory measures such as giving it a regulatory lecture, issuing it a regulatory letter, or ordering it to suspend or halt the acquisition or merger activities.

第二十三条 保险公司收购合并的有关各方未按照规定履行报告、公告、告知义务或者在报告、公告等文件中有虚假记载、误导性陈述或者重大遗漏的，中国保监会有权责令改正，并采取监管谈话、出具监管函、责令暂停或者停止收购合并活动等监管措施。

Article 24: If a relevant party to an insurance company acquisition or merger fails to report to the CIRC the particulars of its de facto controller or affiliated relationships, or if it is holding equity on behalf of another, and the same has a material impact on the acquisition or merger activities, the CIRC may take measures such as placing restrictions on its shareholder rights or ordering it to effect a transfer.

第二十四条 保险公司收购合并的有关各方未如实向中国保监会申报实际控制人情况及关联关系，或存在为他人代持股权行为，且对收购合并行为构成重大影响的，中国保监会可以采取限制其股东权利、责令转让等措施。

Article 25: If a relevant party to an insurance company acquisition or merger commits a violation of the law or a breach of faith, the CIRC may open an integrity file and restrict its investing in insurance companies for three years.

第二十五条 对保险公司收购合并的有关各方存在违法行为或失信行为的，中国保监会可以设立诚信档案，并限制其在三年内投资保险公司。

If a professional intermediary firm fails to truthfully reflect the lawfulness of an insurance company acquisition or merger procedure or the status of assets, the CIRC may open an integrity file and restrict it from participating in insurance company acquisitions and mergers for three years.

对专业中介服务机构未能如实反映保险公司收购合并程序合法性和资产状况的，中国保监会可以设立诚信档案，并限制其在三年内参与保险公司收购合并。

Article 26: The CIRC may, in the course of an insurance company acquisition or merger, liaise and coordinate with the Ministry of Commerce, the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the industry and commerce and tax authorities to verify the completeness, truthfulness and accuracy of the submitted information.

第二十六条 在保险公司收购合并过程中，中国保监会可以与商务部、中国人民银行、中国银行业监督管理委员会、中国证券监督管理委员会以及工商行政管理和税务管理部门进行沟通协调，对申报信息的完整性、真实性和准确性进行核查。

Part Five: Supplementary provisions

第五章附则

Article 27: If, within the 12 months prior to the execution of an acquisition or merger agreement, an affiliated relationship existed, the relevant party shall be deemed an affiliated person.

第二十七条 自签订收购合并协议起之前十二个月内，曾经具有关联关系情形的视同关联方。

Article 28: If two or more investors invest and acquire an equity stake in the same insurance company and the time interval(s) in between do(es) not exceed three months, they shall be deemed persons acting in concert, unless there is evidence to the contrary.

第二十八条 两家或以上投资人投资入股同一家保险公司，时间间隔不超过三个月的，如无相反证据，则视为一致行动人。

Article 29: Subject to the approval of the CIRC, investors may, in insurance company acquisition or merger activities, be exempted from application of Article 2 of the Circular on Issues Relevant to Article 4 of the «Measures for the Administration of the Equity of Insurance Companies» on the number of years for investing in an insurance company.

第二十九条 经中国保监会批准，保险公司收购合并活动中的投资人可不适用《中国保监会关于<保险公司股权管理办法>第四条有关问题的通知》第二条关于投资保险公司年限的规定。

Article 30: Subject to the approval of the CIRC, an investor may, in insurance company acquisition and merger activities, take financing measures such as an acquisition loan provided that the amount thereof does not exceed 50% of the total monetary consideration.

第三十条 经中国保监会批准，保险公司收购合并活动中的投资人可采取并购贷款等融资方式，但规模不能超过货币对价总额的50%。

Article 31: Where an insurance company is exposed to a material risk that could seriously jeopardise the public interest and financial stability, the China Insurance Security Fund Co., Ltd. may participate in the insurance company acquisition or merger after consultations between the CIRC and relevant departments, and the approval of the State Council after case submission.

第三十一条 当保险公司存在重大风险，可能严重危及社会公共利益和金融稳定时，由中国保监会经商有关部门，并报国务院批准后，中国保险保障基金有限责任公司可以参与保险公司收购合并。

Article 32: Where a foreign investor carries out insurance company acquisition or merger activities in China and the capital contributions or shareholding percentages of the foreign shareholders after completion of the acquisition or merger account for more than 25% of the insurance company's registered capital, the provisions of Article 8 of the Foreign-funded Insurance Company Regulations on qualifications shall be complied with.

第三十二条 外国投资人在中国境内进行保险公司收购合并活动，在收购合并完成后外资股东出资或者持股比例占保险公司注册资本超过25%的,应当符合《外资保险公司管理条例》第八条的相关资质规定。

Article 33: Acquisition and merger activities of insurance asset management companies and insurance mutual aid organisations shall be handled with reference to these Measures.

第三十三条 保险资产管理公司、保险互助组织的收购合并活动参照本办法执行。

Article 34: The CIRC is in charge of interpreting these Measures.

第三十四条 本办法由中国保监会负责解释。

Article 35: These Measures shall be effective as of June 1 2014.

第三十五条 本办法自2014年6月1日起施行。

clp reference:3910/14.03.21 prc reference:保监发〔2014〕26号 issued:2014-03-21 effective:2014-06-01

(Issued by the China Insurance Regulatory Commission on March 21 2014 and effective as of June 1 2014.)

Bao Jian Fa [2014] No.26

Part One: General provisions

Article 1: These Measures have been formulated pursuant to the PRC Insurance Law (the Insurance Law), the PRC Company Law and related laws and administrative regulations in order to regulate acquisitions and mergers of insurance companies, protect the lawful rights and interests of consumers of insurance, insurance companies and their shareholders, safeguard the order in the insurance market and the public interest, and promote the optimal allocation of insurance market resources.