Recently in mainland China, hand, foot and mouth disease (HFMD), a disease caused by Enterovirus 71 (EV71), resulted in the death of dozens of children. Taiping Life Insurance Co. Ltd, a subsidiary under China Insurance International Holdings Company Limited (0996), has established a plan to process compensations arising from the disease. In addition, the 7.8-magnitude earthquake in Sichuan province had caused over 12,000 deaths as of 13 May.

There have been rumours that Industrial and Commercial Bank of China (1398) will invest in Taiping Life, a joint venture of China Insurance International Holdings Company Limited and Fortis Group, to own a 43.5% stake in mainland-based Taiping Life, while China Insurance International Holdings will hold a 43.5% stake in the company and Fortis will hold a 13% stake. At present, China Insurance International Holdings holds a 50.05% stake in Taiping Life and its parent company holds a 25.05% stake, while Fortis holds the remaining 24.9%.

Source: www.aastocks.com

Date: 14 May 2008

CN01/MZ/BT/KM