China's Huatai Life Cleared for Hunan Branch

Beijing-based Huatai Life Insurance Co. won the approval from the China Insurance Regulatory Commission to set up a new branch in Changsha, the capital of southern China's Hunan province.

The life insurer's business strategy is to distribute insurance products and services through an agency force and bancassurance in China, while worksite marketing will be one of the company's future business focuses, said Huatai Life in a statement.

Huatai Life was incorporated in 2005. Its principal sponsor is Huatai Insurance Company of China, while its other shareholders include Ace Group, China Resource Co., North China Grid Co., Bright Oceans Co., Kweichow Moutai Co. and Sinorails Development Kunming Co.

In the first quarter this year, Huatai Life realized cumulative original premium income of more than 2.15 billion yuan (US$315 million), according to the CIRC.

Hunan province recorded total original premium income of 13.61 billion yuan by the end of March. Of that, life insurance accounted for 10.19 billion yuan, property insurance 2.56 billion yuan, health insurance 579 million yuan and accident insurance 284 million yuan, said the CIRC.

The life insurer's parent Huatai Insurance, established in Beijing in 1996 with registered capital of 1.33 billion yuan, is the first national joint-stock property insurance company in China with 53 shareholders engaging in 24 industries including petroleum, power, metallurgy, chemicals, aviation and shipping.

In May 2002, the global insurance and reinsurance company Ace Group became Huatai's largest shareholder, providing the insurer with advanced management concepts and global business supporting network.

Huatai Insurance reported cumulative original premium income of nearly 948 million yuan during the first quarter, noted the CIRC.