Beijing: China Insurance Regulatory Commission (CIRC) has announced on Wednesday that it has given green light to the establishment of CNPC Captive Insurance Company
The registered capital of the company is RMB 5bn, among which CNPC contributes RMB 2.55bn as 51% of the registered capital and Petro China contributes RMB 2.45bn as 49% of the registered capital.
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CNPC said that the purpose of the new insurance company is to satisfy its risk management requirements of highly risky and overseas projects, reasonably mitigate its operational risks, balance the business insurance costs, improve its ability to withstand the risks, and ensure the insurance enforcement effect after the occurrence of certain covered incidents.
Among China's large enterprises, only CNOOC has set up a captive insurance company before CNPC. [11/10/12]
