Tahoe seeks buyer for insurance arm

Embattled mainland developer Tahoe Group is seeking potential buyers for its insurance arm, with Ping An Insurance (2318), China Resources, foreign insurance companies and local family enterprises showing an interest, local media reported.

Tahoe Investment, controlled by Tahoe's chairman Huang Qisen, will have a discussion with the buyers of Tahoe Life Insurance in the next two weeks, while there has been no timetable for the deal, according to the reports.

Tahoe Investment acquired the life insurance business from Dah Sing Financial (0440) at HK$10.6 billion in 2017. Market watchers valued the deal at more than the initial purchase price.

Meanwhile, JP Morgan has paid out around HK$944 million to increase 11.08 million shares in Ping An Insurance, at HK$85.2 per share, according to data from the Stock Exchange of Hong Kong. The institution holds 16.01 percent of the insurer, up from 15.87 percent.

In other news, the People's Insurance Company of China (1339) declared an interim dividend of 36 fens per 10 shares, the first time since it listed in 2012, after it reported a 19 percent drop in half-year net profit. No dividend was declared for its subsidiary PICC Property and Casualty (2328).

Shen Dong, vice president of PICC P&C, said the PICC interim dividend reflected that contributions from non-property and casualty insurance had risen.

However, PICC P&C had its own capital needs, including the need to deal with comprehensive reforms of auto insurance, and capital investment in underwriting and investment.