China Mobile is planning to diversify its portfolio by entering insurance business. According to the online financial magazine Caixin, the wireless carrier is planning to infuse 2 billion yuan ($305.6 million) for gaining foothold in the sector.

China Mobile plans to invest 1 billion yuan in CMG Renhe Life Insurance for picking up 20 percent stake in the company. Another 1 billion yuan will be invested in CMG Renhe Property Insurance, where the telecom company is planning to acquire another 20 percent stake. These investments will make China Mobile one of the largest stakeholder in these insurance companies. These companies belong to China Merchants Group.

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Renhe Insurance Company has the distinction of being the first shipping insurance company in the country. The group is currently seeking approval of licenses for its two insurance companies. Upon receiving the approval, Renhe will be able to restart its ventures in the insurance sector.

China Mobile, on the other hand, has made several attempts to establish itself in financial services markets. The company spent 39.8 billion yuan in 2010 to acquire a 20 percent stake in Shanghai Pudong Development Bank.

The communications company noted that domestic insurance sector has a bright future ahead. It also emphasized the growth potential of internet insurance segment. China Mobile is looking to draw collaboration between internet business and internet insurance.

China Mobile is the largest wireless carrier in China. The company reported total subscriber base of 835 million in April this year. Out of this, 391 million users are on 4G network.

TagsChina Mobile, CMG Renhe Life Insurance, CMG Renhe Property Insurance