Premiums of Shanghai Foreign Insurers down in Jan

This January, foreign life insurance companies in Shanghai gained the premiums revenues of CNY 913 million, down 10% from the corresponding period of 2010, according to available data.

Generali China Life Insurance Co. Ltd Shanghai Branch in the month realized the premium revenues of CNY 61.6 million, versus CNY 111.6 million during January 2010. Shanghai Branch of another insurer called Sun Life Everbright Life Insurance Co. in the meantime achieved the life insurance premiums of CNY 38.6 million, decreasing 65.7% year over year.

Industry insiders pointed out that salespersons and sales channels are two important factors for the premiums of foreign life insurance companies. Currently, some foreign life insurers seem unable to attract competent sales agents. China Insurance Regulatory Commission (CIRC) thus encourages these insurers to launch innovative products that can meet the multiple needs of consumers and tap new ways of marketing to develop the market potential.

Ever since the entry of these foreign insurance companies into China, they have not progressed fast under the competition with Chinese players. Currently, the Chinese sides are the controlling shareholders of nine Sin-foreign life insurance companies.

As New York Life Insurance Company has withdrawn from Haier New York Life Insurance Co., the joint venture has changed its name into Haier Life Insurance Company Limited. The U.S. insurer has already transferred a 25% stake of Haier New York Life to Qingdao Haier Investment and Development Co. and another 25% stake to Meiji Yasuda Life Insurance. In this way, Haier gets a 70.76% stake in the new insurance joint venture and the Japanese side has a 29.24% stake.

Some time ago, China Construction Bank 601939.SH, 0939.HK)-led investment consortium won the bid for a 50% stake that China Pacific Insurance (Group) Co. (CPIC, 601601.SH, 2601.HK) held in Pacific-Antai Life Insurance. The Beijing-based property lender got a 1% stake in the financial center Shanghai-based insurance joint venture. In addition, ING as the foreign parent of Pacific-Antai Life Insurance had already inked an equity transfer agreement with the Chinese bank, to sell another 50% stake that it took in the insurance company to the lender.

In addition Industrial and Commercial Bank of China has gotten a controlling 60% right in AXA-Minmetals Assurance Co.; Bank of China is the controlling shareholder of BOC Insurance and Heng An Standard Life; and Bank of Communications controls a 62.75% stake in BoComm Life Insurance Limited.