China Life Insurance to Increase Investment in Pension Unit

China Life Insurance Co., the nation's largest insurer, agreed to invest 1.85 billion yuan ($265 million) more cash into its pension unit, it said in a statement to the Hong Kong stock exchange.

The Beijing-based company will directly own 87.4 percent of the China Life Pension Insurance Co. after the increased investment, the statement said. It will pay for the investment with internal resources, it added.

The pension unit manages group, and individual pension and annuity businesses, and also sells short-term medical insurance, personal accident policies as well as re-insurance related to those policies, the statement said. It will use the new capital to set up branches and representative offices in Chinese towns and provinces.

The additional investment will bring China Life's stake held directly and indirectly through its asset management arm to 92 percent from 75 percent, the statement released late yesterday said.