Bank of Beijing in Insurance Bid

Oct 22,2008 00:00 by saroja
Bank of Beijing Co. said Tuesday that it is in talks to buy Beijing Capital Group Co.'s 50% stake in an insurance joint venture with ING Groep NV as part of its plans to break into other business areas.

Bank of Beijing, China's largest city commercial bank by assets, said it has yet to finalize details of the deal to buy into ING Capital Life Insurance Co.

ING owns the other 50% of the small joint venture, which is based in Dalian, a port city in northeastern China.

The Dutch financial-services firm also holds a 16% stake in Bank of Beijing and a 50% stake in another China insurance joint venture, Pacific-Antai Life Insurance Co., with China Pacific Insurance (Group) Co.

ING spokeswoman Karen Williams said Tuesday that the company has no plans to dispose of its business in China or merge its insurance operations there because it is optimistic about its prospects in the country.

ING said Monday that it was selling its entire life-insurance unit in Taiwan to Fubon Financial Holding Co. That move followed the Dutch firm saying it expects a third-quarter loss of 500 million euros (US$670 million) because of asset write-downs and provisions.

Officials at Bank of Beijing declined to comment on the plan to buy into ING Capital Life Insurance, while officials at Beijing Capital Group, a state-run investment arm of the Beijing municipal government, weren't available for comment.

Bank of Beijing has said it plans to diversify into non-banking sectors, including the fund, brokerage and financial leasing industries.

http://online.wsj.com/article/SB122461364443154979.html