POLICE have discovered the dismembered body of an insurance agent reported missing and feared kidnapped after her family received a ransom demand last week. A 28-year-old man surnamed Law, arrested on Wednesday as he entered Hong Kong at Lowu, had led officers to the body and is expected to appear in Fanling court this morning. The body of 34-year-old Chan Lan-kiu, of Tin Shui Wai, was found in at least 10 pieces during a search of Lantau Island hillsides by 50 police, including the Flying Tigers unit. Chan lived with her parents and five brothers and sisters. Law was said to have met her about a month ago through a friend and indicated he wanted to buy insurance. Top Glory Insurance company confirmed one of its agents had been missing since last week and staff had been trying to contact her family. New Territories North Superintendent (Crime) Tsang Wai-hung said last night Chan was last seen leaving for work on February 6, the day before the $300,000 ransom demand arrived. The money was not paid but experts believe the victim was killed before the demand was made. Police believe the unmarried woman was killed at Mui Wo and may have been shot. No clothing was found on the body pieces, discovered about 50 metres up a slope beside Shum Wat Road leading to the Po Lin Monastery. Officers sealed off a Mui Wo holiday home where they believe the crime took place. They removed a blood-stained door for analysis and impounded a van believed to have been used to move the body parts. Police appealed for another man, Cheung Moon-keung, a 29-year-old unemployed Lantau resident, to come forward to help with their inquiries. He is believed to have been with the suspect in Mui Wo, but not necessarily at the time Chan died. 'We are shocked and very sad,' said Hans Lee Ho-sang, Top Glory's chief operating officer. 'Chan went out to work and never came back,' Mr Lee said. The company employs about 1,500 agents who often work out of the office visiting clients and potential buyers.