Alibaba Group's two subsidiaries -- Ant Financial and Tianhong Asset Management, are applying for the license to establish a mutual insurance company. According to a report of the Securities Daily, ten partners have participated in establishing the mutual insurance company, and Ant Financial and Tianhong Asset Management are the major initiators.
It's also reported that Ant Financial and Tianhong Asset Management would respectively invest 300 million yuan and 205 million yuan, accounting for 30 percent and 20.5 percent of the total initial capital of the proposed company.
China's private capital has shown increasing interest in setting up mutual insurance companies. According to report released by the China International Corporation Limited, the size of China's mutual insurance market is estimated to hit 760 billion yuan in the next ten years.
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