(Yicai Global) April 17 -- JD.Com Inc. has injected CNY537 million (USD85.5 million) into the local unit of German insurer Allianz SE as the Chinese e-commerce giant looks to obtain a domestic insurance license.
The deal, which diluted the parent’s stake to half, gives JD a third of Allianz China General Insurance Co., the target said in a statement yesterday. Other investors included China Sinda Intellectual Property Ltd. (12.4 percent) and Shenzhen Huijing Tongda Business Consulting Co. (4.27 percent).
Allianz China and Beijing-based JD will also strike a partnership to start a digital insurance joint venture in China. The two firms will develop solutions to accommodate the rapidly evolving demands of domestic consumers as JD looks to keep up with its fellow tech behemoths, Alibaba Group Holding Ltd., Tencent Holdings Ltd. and Baidu Inc., all of which are plowing ahead in the sector and have already secured insurance licenses.
The insurance and e-commerce sectors are closely interrelated, JD’s founder and Chairman Liu Qiangdong said last year, adding that the firm was applying for an insurance license but making slow progress under the stringent regulation that looms over China’s financial sector.