China’s largest ride-hailing company, Didi Chuxing, and Legend Holdings, an investment company which controls PC maker Lenovo, have become shareholders in Hyundai Insurance (China) Co., Ltd., each controlling a 32% stake, according to information disclosed by China Banking and Insurance Regulatory Commission (CBIRC) on Tuesday.
Didi’s subsidiary Dirun (Tianjin) Technology Company Limited and Legend will each need to contribute RMB 533 million to increase Hyundai Insurance’s registered capital from RMB 550 million to RMB 1.67 billion as part of the deal.
Hyundai Marine & Fire Insurance, which owned Hyundai Insurance (China) in its entirety before the deal, will see its stake in the company reduced to 33% after all transactions are completed.
“We are optimistic about the prospect of China’s property insurance industry, and believe that innovations in technology and business models can further boost this industry,” Legend Holdings told KrASIA on Wednesday.
Hong Kong-listed Legend, driven by its “strategic investment plus financial investment” strategy, is active in venture capital investments and other forms of investment. It once backed Hong Kong-listed car rental firm CAR and Shenzhen-listed payment company Lakala among others. Legend’s founder, Liu Chuanzhi, who retired from the company last December, is the father of Jean Liu, president of Didi Chuxing.
Didi has been providing its drivers and users with insurance products since the company was granted a license to operate insurance business by taking controlling shares in Zhonganfengshang Insurance Company in March 2016, according to tech media EqualOcean.