Hannover Re, a German reinsurance company, has received approval to increase the registered capital of its Shanghai branch by CNY1.56bn ($220m), the CBIRC said in a statement posted on its website.
The increase takes the branch’s total registered capital to CNY4.105bn.
Previously, in September 2019, the German reinsurer had increased its Shanghai branch’s registered capital from CNY1.545bn to CNY2.545bn, the statement said.
The capital increase was made after rapid growth in the business of its Shanghai branch, indicating an upbeat outlook of the Chinese reinsurance market despite the COVID-19 epidemic shock to the global economy, the CBIRC said.
Several other foreign reinsurers have also increased their capital recently. According to Xinhua News, in November 2019, the CBIRC approved a capital increase for Gen Re Shanghai branch from CNY300m to CNY439m. In addition, in April 2020, Swiss Re Beijing branch received approval to increase its registered capital from CNY300m to CNY1.355bn.