Didi Eyes Financial Domain, Begins with Hyundai Insurance
COVID-19 and China
Didi building. Image credit: Didi website

Hyundai Insurance (China) Co., Ltd. on July 26 disclosed the information of stake change that indicates the Korean insurance company tends to bring in some Chinese capitals including Chinese ride-hailing giant Didi Chuxing.

According to the announcement, registered capital of Hyundai Insurance China (HIC) will rise up to USD 241.8 million from USD 79.8 million, and four new shareholders will subscribe to the increased capital.

After subscription, Hyundai Marine & Fire Insurance, parent company of HIC, will reduce its shares to 33% and still be the largest shareholder in HIC. Lenovo and Dirun Technology, a wholly-owned subsidiary of Didi Chuxing, will hold 32% of shares respectively, being the second-largest shareholders. The rest of shares will be purchased by E-Business and Hongshanyaosheng.

Early in March 2016, Didi was granted a license to operate insurance business by taking controlling shares in Zhonganfengshang Insurance Company. Since then, Didi has collaborated with many insurance companies such as Allianz and China Life and pushed out more than 20 property and life insurance products.

As a mobility service provider with over 100 million users, Didi’s financial boundary is constantly expanding. The private-held company purchased an online payment license at the end of 2017 at a cost of USD 43.5 million and started to provide its drivers and users with insurance, loan, and other financial services.

A spokesman of HIC said introduction of Chinese shareholders was an active response to the competitive environment in Chinese insurance industry. Collaboration with Chinese capitals would help to adjust the company's business structure and satisfy development needs.

For Didi, cooperation with Hyundai Insurance may be a new growth point for its financial business.

HIC was a property insurance company founded in February 2007 and wholly-owned by foreign capital before.

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