(Yicai Global) Dec. 9 -- China's banking and insurance regulator has approved the CNY1.9 billion (USD293 million) deal that makes Japan's MS&AD Insurance Group Holdings the second-largest shareholder of China's BoCommLife Insurance after 18 months of consideration.

Australia's Colonial Mutual Life Assurance Society can sell its 37.5 percent stake in the Chinese insurer to the Tokyo-headquartered insurance firm, backed by Toyota Motor and Nippon Life Insurance, the China Banking and Insurance Regulatory Commission said in a statement on its website yesterday. The Chinese firm had revealed its shareholder's intentions in March 2019.

BoCommLife Insurance’s predecessor China Life-CMG Life Assurance was established in June 2000 by China Life Insurance and the Commonwealth Bank of Australia. When going public in Hong Kong in 2003, China Life Insurance promised to sell its stake in China Life-CMG Life Assurance to avoid rivalry.

The target firm has been performing well during the Covid-19-hit year. BoCommLife Insurance's net profit rose by 32 percent to CNY466 million (USD71.4 million) in the first three quarters of this year from a year ago. Its revenue climbed by 29 percent to CNY13 billion (USD2 billion).

The Shanghai-based insurer has CNY5.1 billion in registered capital with China's Bank of Communications being its biggest shareholder with a 62.5 percent stake. By last December, the firm had CNY5.5 billion in total assets.

Editor: Emmi Laine