Fosun Group, the Chinese private conglomerate, has unveiled a reinsurance subsidiary to tap into Asia's "underdeveloped" market.
The new reinsurer, Peak Reinsurance Co Ltd, is Fosun's fourth investment in the insurance sector, and is part of the Shanghai-based company's ambition to build itself into a global business empire that combines industry, investment and insurance.
The establishment of Peak Re marks the introduction of China's second reinsurer.
Fosun has launched the new venture in partnership with International Financial Corp, a member of the World Bank Group, which invested $81.95 million for a 14.9 percent stake. Fosun has invested $468.05 million to hold 85.1 percent of the stock.
The new company will function as an insurer for insurance companies, providing non-life reinsurance policies for insurers to reduce their risk exposure.
Peak Re's only competitor in the nation is the State-owned enterprise China Reinsurance (Group) Corp.
"We want Peak Re to be the industry leader in the Asia-Pacific region, where the insurance and reinsurance sectors are underdeveloped," said Wang Qunbin, Fosun Group's president, who will serve as the new company's chairman.
Asia remains generally underinsured in terms of non-life insurance.
A web user recently posted a photo of a twisted building in the suburb of Beijing, calling it "Tower of Large Intestine".