The new company - Lloyd's Reinsurance Company (China) Ltd - will enable Lloyd's to reinsure the local currency business which now comprises nearly 90 percent of the total Chinese reinsurance market, Lloyd's said.

Lord Levene of Portsoken, the chairman of Lloyd's, said yesterday in Shanghai that it was a very important day for the company.

China's economy is growing so fast that "we want to get involved in every part of the economy with no restriction on specific sectors," he replied to questions on which industries Lloyd's would focus on.

Lloyd's 16 syndicates have been the founders of the new China operation.

The company, with a registered capital of 200 million yuan (US$26 million), will have four underwriters in Shanghai initially, and 10 Lloyd's staff members. Staff numbers are expected to grow.

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