Zurich Financial Services Group acquires stake in China's fourth largest life insurer New China Life- 2 May, 2001
Zurich, January 5, 2001. - The Zurich Financial Services Group (Zurich; Ticker Symbol ZURN) has participated in a share capital increase of New China Life Insurance Co., Beijing, together with three other foreign investors, International Finance Corporation - a member of the World Bank Group -, Meiji Life Insurance Company, Tokyo, and Netherlands Development Finance Company FMO. After the increase of the share capital to RMB 1.2 billion (approximately USD 145 million), Zurich holds 10% of New China Life, while the other foreign investors together own 14,9%. Zurich's investment amounts to USD 39 million.
New China Life is the biggest private life insurance company and China's fourth largest life insurer. The company started business in Beijing in 1996 and operates throughout China. New China Life has branches in Beijing, Chengdu, Nanjing and Tianjin, and is preparing for opening 6 more branches in the next few months, in major markets such as Shanghai, Guangzhou, Wuhan, Jinan, Hangzhou and Harbin. In 1999 New China Life's gross written premium amounted to RMB 1.06 billion (approximately USD 120 million). The company employs about 500 people and has more than 2500 agents.
Zurich and New China Life have also entered into a "Technical Assistance Agreement" under which Zurich will second senior executives to New China Life and provide technical assistance and training to its employees. Zurich will also delegate a member to the Board of Directors.
Malcolm Jones, member of the Group Management Board of Zurich Financial Services and responsible for Asia Pacific, commented on the agreement: "We are very excited about the fact that Zurich is among the first foreign insurers to be allowed to have a shareholding in a nation-wide operating Chinese life insurance company. We expect that the economic and social reforms such as the deregulation of medical care and pension business will increase the potential of the Chinese life insurance market tremendously."
Presently, Zurich operates representative offices in Beijing, Guangzhou and Shanghai. The Group is also expected to be awarded with a non-life-license under a bilateral trade agreement reached between Switzerland and China before the latter's accession to WTO.
The Zurich Financial Services Group is a global leader in the financial services industry, providing its customers with solutions in the area of financial protection and asset accumulation. The Group concentrates its activities in five business segments: non-life and life insurance, reinsurance, Farmers Management Services, and asset management. Headquartered in Zurich, Switzerland, the Group's worldwide presence builds on strong positions in its three key markets - the United States, the United Kingdom and Switzerland. It has offices in more than 60 countries reaching over 35 million customers and employing 68,000 people. Based on consolidated figures for 1999, the Group achieved gross premiums of USD 48 billion. This amount includes insurance deposits as well as premiums from the Farmers Exchanges. The net income amounted to USD 3.26 billion. On June 30, 2000, the Group had USD 435 billion of assets under management of which USD 260 billion represent funds managed for third-party institutional and retail customers.
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