Shanghai/Singapore/Munich:
Germany major Allianz on Saturday announced that it has received approval from the China Banking and Insurance Regulatory Commission (CBIRC) for the preparatory establishment of an insurance holding company in China.
The company – Allianz (China) Insurance Holding Company Limited – will be China’s first-ever wholly-owned insurance holding company by a foreign insurer, and will be based in Shanghai.
Such an approval for Allianz follows Chinese government measures to further open up and encourage investment in China by foreign financial institutions
Allianz expects the holding company to be established in 2019, and will work on the necessary preparatory work under the guidance and assistance of the regulatory authorities.
This holding structure will anchor Allianz Group’s long-term commitment to China by enhancing its strategic and financial flexibility to capture business opportunities and drive long-term success in the market. When fully established, Allianz (China) Insurance Holding Company Limited will be strongly capitalized according to its application.
The regulatory approval follows a series of measures recently announced by the Chinese government to further open up and encourage investment in China by foreign financial insurance institutions. This development follows the long-term positive bilateral relationship between China and Germany, and furthers its continued cooperation and collaboration.
Oliver Bate, Chairman and CEO, Allianz Group said, “Allianz is proud to be the first foreign insurer to commence the establishment of a holding company in China – a significant milestone for us to expand our presence in this strategic market. Today’s announcement also follows the positive long-term cooperation between China and Germany, allowing our Chinese and international clients to be able to enjoy Allianz’s comprehensive financial and risk management solutions and services, and benefit from the continued growth and liberalization of China’s financial markets.”
George Sartorel, Regional CEO for Asia Pacific, Allianz, said, “China is central to our growth strategy for Asia, this development positions Allianz strongly to combine our global knowledge with deep insights into local consumer and industry needs. We look forward to contributing to the continued development and innovation of China’s fast-growing insurance sector, as well as to better serve Chinese customers and communities.
This marks the latest milestone for Allianz in China, a market it has served since the early 1910s. Today, with its 2,000 employees and affiliates in the country, Allianz offers the full spectrum of protection, risk management and asset management solutions and services in China. Allianz expects China to continue setting the pace for global insurance market growth, with premiums expected to rise 14 per cent per annum in the coming decade.
Despite large scale presence for almost 18 years, the total market share of foreign life insurers in China was just 6.97 per cent last year, while the same was 1.96 per cent for foreign property and casualty insurance companies.The couintry has a low market penetration of 3 per cent..