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China Pacific Insurance (Group) Co., Ltd. (CPIC Group) and U.S.-based Carlyle Group signed an agreement Monday to inject 6.6 billion yuan (815 million US dollars) into China Pacific Life Insurance Co. Ltd. (CPIC Life), a subsidiary of CPIC Group.

After the injection, Carlyle, a global private equity firm, together with its strategic investor, U.S.-based Prudential Financial Inc., will hold a 24.975 percent stake in CPIC life, China's third largest life insurer.

The injection of 3.3 billion yuan from the Carlyle partnership is the largest private equity investment in China to date.

Wang Guoliang, Chairman of CPIC life said that the agreement with Carlyle will dramatically accelerate CPIC Life's expansion plans and its participation in the world's fastest growing life insurance market.

Currently, CPIC Life has an 11 percent share in the China market, of which the country's top three players combined have over 80 percent.

It testifies to the maturing investment and regulatory environment in China and to the government's commitment to financial reform, said Yang Xiangdong, Managing Director and Co-head of the Carlyle Asia Buyout Group.

The transaction is considered a significant move for the CPIC Group to become a financial holding company.

The agreement follows the approval by the Chinese Insurance Regulatory Commission (CIRC), China's insurance watchdog. The transaction, which has gained overwhelming approval from shareholders of the CPIC Group in October, is expected to close within a month.

After the transaction, Carlyle will nominate a new management team in CPIC life.

This is Carlyle's second major investment in China in the past two months.

Carlyle signed a definitive agreement to acquire an 85 percent stake in Xugong Group Construction Machinery Co. Ltd., China's leading construction machinery manufacturer, for 375 million US dollars this October.