Allianz has received approval from the China Banking & Insurance Regulatory Commission (CBIRC) to form an insurance holding company in China.
Allianz (China) Insurance Holding Company will be the country’s first-ever wholly owned insurance holding company by a foreign insurer, and will be based in Shanghai, the firm said in a statement.
The holding structure is part of the 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”.
Oliver Bate, chairman and chief executive of 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.”
China-Germany relations
The firm said that this regulatory approval follows a series of measures made by the Chinese government to encourage investment in China by foreign financial institutions.
It added that the “development follows the long-term positive bilateral relationship between China and Germany and furthers its continued co-operation and collaboration”.
Bate said: “[The] announcement also follows the positive long-term co-operation 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 liberalisation of China’s financial markets.”
Allianz has served the Chinese market since the early 1910s. Currently, it has 2,000 employees and affiliates in the country, and offers protection, risk management and asset management solutions and services.
Continued growth
Allianz expects China to continue setting the pace for global insurance market growth, with premiums expected to “rise 14% per annum in the coming decade”.
The holding company is expected to be established in 2019, with Allianz working on the necessary preparatory work with the regulatory authorities.
George Sartorel, regional chief executive 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.”
