Chinese EV Giant BYD To Acquire Yi'an P&C Insurance Co.

BYD, the Chinese electric vehicle (EV) manufacturer, announced that it is considering acquiring Yi'an P&C Insurance Co, an insurer that was seized by Chinese regulators two years ago as part of a crackdown on financial conglomerates.

Caixin, a Chinese business publication, reported earlier this month, citing unnamed sources, that BYD would completely take over the insurer and use it to launch an insurance business aimed at electric vehicles.

"The acquisition is ongoing," BYD said, referring to the reported deal. It stated that more information would be released later.

Yi'an P&C Insurance was one of nine companies seized by Chinese regulators from the Tomorrow Holdings conglomerate in July 2020.

Last year, China's banking and insurance regulator announced that it had agreed to allow Yi'an P&C Insurance to file for bankruptcy and reorganisation.

BYD, the world's largest seller of battery electric vehicles (BEVs) and plug-in hybrids, said that it expects its 2022 net profit to be more than five times what it earned the previous year.

Electric vehicles are costly to repair, posing a challenge to insurance companies accustomed to dealing with traditional combustion engine vehicles. In August 2019, Tesla launched its own insurance subsidiary, promising rates up to 30% lower than competitors.