Wu Yan named next PICC chairman in last-minute switch
China Life Insurance chairman Yang Chao narrowly avoided being transferred to the helm of PICC Property and Casualty, the country's largest non-life insurer, in what sources say is a display of his personal star power and high-level political connections.
Instead, the China Insurance Regulatory Commission (CIRC) announced yesterday that China Life president Wu Yan - who was expected to replace Mr Yang at China Life - would take over PICC, whose head Tang Yunxiang is retiring.
Sources close to China Life said Mr Yang was originally picked to move to PICC but had successfully lobbied senior government leaders to have the decision rescinded.
'It appears his connections in the State Council are better than those of the CIRC,' a source said.
The market took the news as positive for China Life and negative for PICC, which, along with the rest of the country's property and casualty insurers, has struggled to match the spectacular growth in the life insurance sector in recent years.
Hong Kong-listed shares of PICC - which had jumped 27 per cent in the first three days of the week on reports of Mr Yang's transfer - fell 4.81 per cent yesterday to HK$4.55 after dropping 7.9 per cent on Thursday, while China Life shares rose 1.08 per cent in Hong Kong to HK$23.40 after three consecutive days of decline.
