Prudential and Fosun to Launch Life Insurance Joint Venture

September 16, 2011

Prudential (NYSE:PRU) and Fosun International announced that they have received approval from the China Insurance Regulatory Commission on the preparation to launch a new life insurance joint venture company in China.The company will be the only life insurance joint venture in China between a non-state-owned enterprise and a foreign capital enterprise.The joint venture will start with registered capital of $78 million with the Prudential Insurance Company of America and Fosun each contributing 50% of it.The joint venture will be headquartered in Shanghai, and it is expected to begin operations in Q4 12, following receipt of final approval by CIRC and other regulatory authorities.Prudential Financial (NYSE:PRU) has a potential upside of 43.6% based on a current price of $50.18 and an average consensus analyst price target of $72.07.