Alibaba-Backed Insurer Raises $934M From Investors Including Morgan Stanley

Zhong An Online Property & Casualty Insurance Co., a Chinese online insurer part owned by Alibaba Group Holding Ltd., said it raised 5.8 billion yuan ($934 million) from investors including Morgan Stanley.

The Shanghai-based company now has a market value of 49.6 billion yuan after the first share sale since its establishment in 2013, according to an e-mailed statement Friday. Other investors include China International Capital Corp. and CDH Investments Fund Management Co., the insurer said.

The new investors are joining Alibaba and Tencent Holdings Ltd. in tapping the growing insurance needs of the nation’s 557 million internet users. Zhong An, which operates entirely online and doesn’t have outlets like traditional insurers, has developed more than 100 products and sold 1.6 billion insurance policies since commencement in November 2013, according to the statement.

The company said it will continue to expand its operations and widen its business scope after introducing the new strategic partners. Zhong An has won a license to sell vehicle insurance, the biggest segment of the non-life insurance market in China, according to the statement.

Zhong An was China’s first online insurer, whose initial investors included Alibaba’s finance arm, Tencent and Ping An Insurance (Group) Co.