Jun. 19, 2009 (China Knowledge) - China Investment Corp (CIC), the country's US$200 billion sovereign wealth fund, has taken over the supervision of China Reinsurance (Group) Corp's management team from the China Insurance Regulatory Commission
(CIRC), the nation's insurance watchdog, according to an online statement published by CIC on Wednesday.
CIC's news department said that CIC will be entitled to name senior managers at China Reinsurance, which is 85.5% held by Central Huijin Investment Co, an investment arm of CIC, and 14.5% owned by China's Ministry of Finance
However, it is not clear how the daily operations of China Reinsurance, the nation's largest reinsurer, will be supervised after the change. CIC says CIC and Central Huijin will not directly take part in the insurer's operation and management.
In April 2007, Central Huijin injected US$4 billion into China Reinsurance, helping it become Asia's largest reinsurer and the world's fifth largest reinsurer by capital.
China Reinsurance posted a profit of RMB 1.58 billion in the first three months of this year, versus the RMB 3.15 billion in losses recorded in the corresponding period of 2008.
CIC reportedly intends to spend billions of U.S. dollars for a stake in Renaissance Technologies, one of the most famous and successful hedge funds on Wall Street, according to an earlier report from China Knowledge.