China’s banking and insurance regulator has approved a new state-backed agricultural reinsurance firm, the state-owned Xinhua News Agency reported on Friday.

The new reinsurance company, with registration capital of 16.1 billion yuan ($2.34 billion), is co-established by nine shareholders including the Ministry of Finance, China Reinsurance Group Corp, country’s largest reinsurance giant, and Ping An Property & Casualty Insurance Co, a uint of Ping An Insurance Group, Xinhua said.

The firm will help expanding the insurance coverage of catastrophe losses, and further safeguard country’s agricultural production, according to the report.