The company will be the only life insurance JV in the country between a non-state-owned enterprise and a foreign capital enterprise, both firms said in a statement. The JV will start with a registered capital of RMB500 million ($78 million) with the Prudential Insurance Company of America, the US insurance arm of Prudential, and Fosun each contributing 50 per cent. Headquartered in Shanghai, it is expected to begin operations in the fourth quarter of 2012.

While the Chinese insurance market has grown steadily over the past years,  penetration and density remain below the global average level, indicating a strong potential to expand. As of 2010, the China Insurance and Regulatory Commission records RMB1.06 trillion in life insurance premiums. The JVs first priority will be to establish a management team and begin building the firm, starting with Kenny Wu as head of the preparation team.

Prudential has a presence in China through a representative office in Beijing, the Everbright Pramerica Fund Management in Shanghai, Pricoa Consulting (Shanghai) and Pricoa Relcation Hong Kong. Fosun, whose current holdings include key business players in the country, is the largest non-state-owned enterprise in Shanghai.