Global insurance firm AIA has become the first foreign company with a wholly owned life insurance subsidiary in mainland China, the firm said.
It will be able to convert its Shanghai branch into a subsidiary, following approval from the China Banking and Insurance Regulatory Commission (CBIRC).
As the subsidiary will be incorporated in the Chinese city, AIA is looking to receive relevant approvals to establish other branches throughout the country.
Significant milestone
Lee Yuan Siong, chief executive and president of the AIA Group, said: “We are delighted and honoured that AIA is the first foreign company to receive approval to set up a wholly-owned life insurance subsidiary in mainland China.
“AIA traces its roots to Shanghai in 1919 and it is entirely fitting to base our new subsidiary in the city where we began. Since AIA’s return to mainland China in 1992, we have focused on contributing meaningfully to the sustainable development of the life insurance industry.
“Our incorporation as a subsidiary is another significant milestone in AIA’s long history and a clear demonstration of our ongoing support for the further opening up of the financial services industry.”
The firm added that policyholders will not be impacted by the transition, and that current contracts will still be valid and will be taken on by the newly incorporated subsidiary.
