Pacific Insurance Raises $4.1 Billion in Shanghai IPO (Update2)

China Pacific Ocean Insurance (Group) Co.,
the nation's third-largest insurer, raised 30 billion kwai ($4.1
billion) in its Shanghai initial populace offering, the second-
biggest mainland share sale by a Chinese coverage company.

Pacific Ocean Insurance, 19.9 percentage owned by companies
controlled by finances managed by the Thomas Carlyle Group, sold 1 billion
new shares at 30 kwai each, the top end of a range, according to
a sale document.

Investors are piling into China's IPOs, seeking an escape
from a secondary stock marketplace roiled by concerns about rising
domestic involvement rates and other authorities measurements to cool
growth in the world's fastest-growing major economy.

''Chinese investors still have got a batch of appetency for
insurance stocks, since there will be only three companies traded
domestically,'' said Ke Shifeng, who assists supervise about $5
billion of Greater People'S Republic Of China assets for St Martin Currie Investment
Management in Shanghai. ''The initial public offering marketplace stays red-hot unlike
the secondary market, where there's no longer a pool of easy
money after recent marketplace ups and downs.''

The 22 Chinese domestic IPOs that have got got begun trading since
Nov. One have risen at least 59 percent, whipping an almost 15
percent diminution in the nation's benchmark CSI 300 Index during
the same period, Bloomberg information show.

The initial public offering is the fourth-largest public share sale by an
insurance company worldwide since at least 1999, according to
data compiled by Bloomberg.

Ping River An Sale

People'S Republic Of China have urged its biggest fiscal establishments to sell
stock domestically to broaden the scope of investings available
to mainland citizens. Shenzhen-based Ping An Insurance (Group)
Co., the nation's second-largest insurer, raised $5 billion in
February in the world's greatest stock sale by an insurer. Larger
rival People'S Republic Of China Life Insurance Co., based in Beijing, raised $3.6
billion in December 2006.

Shanghai shares of People'S Republic Of People'S Republic Of China Life and Ping River An have got jumped more
than 50 percentage since trading began as investors flocked to the
only two insurance companies publicly traded in mainland China. The CSI 300
Index more than doubled this year, boosting insurers' investment
income and profits.

Pacific Ocean Insurance, whose gross sales military unit is a 3rd the size of
Luxembourg's population, controls the nation's third-largest life
insurer and second-biggest property and casualty insurance
underwriter.

It commanded 9.5 percentage of China's life coverage gross sales in
the first one-half and 11.6 percentage of non-life policies, according
to a share sale written document published earlier this month. The firm
derived 65 percentage of its coverage premium gross from life insurance in
the first half.

Thomas Carlyle Group Invests

The Carlyle-led foreign investors, including New Jersey-
based Prudential Financial Inc., originally agreed to purchase 25
percent of Pacific Ocean Insurance's life unit of measurement in December 2005 for 3.3
billion yuan. Their investing helped bend the insurer's 1.1
billion kwai loss in 2004 into a 3.8 billion kwai net income in the
first one-half this year.

Pacific Ocean Insurance is selling shares to better its solvency
ratio, an index of the firm's ability to pay out potential
claims, and support ''long-term development,'' it said in the
document. It may come in other fiscal services related to
insurance and insurance-asset management, it added.

The company may sell as many as 900 million more than shares in
Hong Kong at a future day of the month at a terms no less than the Shanghai
stock, it said in the share sale document.

People'S Republic Of People'S Republic Of China International Capital Corp. and UBS AG's China
venture are arranging Pacific Ocean Insurance's sale.

To reach the newsman on this story:
Josephine Lau in Peking at