(Yicai Global) March 11 -- The investment by Chinese ride-hailing juggernaut Didi Chuxing and oil trader Legend Holdings in Hyundai Insurance China to position themselves as its second-largest shareholders has obtained the consent of the China Banking and Insurance Regulatory Commission, the agency said on its website yesterday.

Hyundai Marine & Fire Insurance will remain Hyundai Insurance's biggest shareholder, but its stake will shrink to 33 percent from 100 percent, while Didi's Dirun Tianjin Technology unit and Beijing-headquartered Legend will chip in CNY1.1 billion (USD158 million) apiece to each take a 32 percent slice to become the firm's second-largest stakeholders, per the CBIRC approval. Anhui Easy-Biz Digital Technology and Hongshan Yaosheng Equity Investment Partnership each hold 1.5 percent.

Beijing–based Hyundai Insurance will transform into a China-foreign joint venture from a wholly foreign-owned enterprise insurer, and its registered capital will rise to to CNY1.67 billion from CNY550 million (USD79.1 million).

Set up in February 2007 by Hyundai Marine & Fire Insurance, a major division of South Korea's second-largest 'chaebol' (conglomerate) Hyundai Group, Hyundai Insurance was the first WFOE insurer in Beijing. It reported about CNY84 million in revenue from underwriting services and CNY4.3 million in net profit as of the end of June.

Beijing-based Didi secured its insurance agency license via its subsidiary when it took over as Zhongan Fengshang Beijing Insurance Agency's controlling shareholder, which gives it a pass to provide insurance services un deer Chinese law. Lenovo co-founded Minsheng Life Insurance and Guomin Life Insurance (now merged and known as ABC Life Insurance) and became Union Insurance Broker's largest shareholder, but has since sold off its stake in the three companies.

Legend plies the oil, gas and petroleum product trading business, as well as aviation, construction and real estate developments. It has offices and registered companies in Seychelles, India, Malaysia, Qatar, Malaysia, Nepal and Dubai. Its shares were up 0.16 percent at HKD12.54 (USD1.61) this morning. Didi is unlisted.

Editor: Ben Armour