July 02, 2009

The financial supermarket model may have lost some of its luster in the West, but Ma Mingzhe, chairman of Ping An Insurance (Group) Co. of China, remains a firm believer in diversification.The 54-year-old has worked at Ping An since it was founded more than 20 years ago as a property and casualty insurer, and helped it grow into China's No. 2 insurer by premiums after China Life Insurance Co. As its chief executive since 2001 he has guided its expansion in banking and asset management, as its core insurance business has continued to grow.

On June 12, Ping An made its biggest move yet into banking, agreeing to pay up $3.2 billion to expand its holding in Shenzhen Development Bank to about 30%, from less than 5%. About half the purchase was of newly issued shares, with the other half coming from TPG, a private equity fund. The deal gives Ping An a controlling stake in one of China's ten biggest lenders.The Shenzhen Development deal followed a stumble for Ping An on another big investment, a stake in bought in Fortis NV in late 2007 that cost it about $3 billion amid the financial crisis.