Aviva announces that its joint-venture in China, Aviva-Cofco has received regulatory approval to open additional sales offices in the cities of Zhongshan in Guangdong province and Mianyang in Sichuan province, making it the first foreign insurer to enter these markets. With the new licenses, Aviva-Cofco will now operate out of five cities in China. It already has offices in the cities of Beijing, Guangzhou and Chengdu.
Aviva announces that its joint-venture in China, Aviva-Cofco has received regulatory approval to open additional sales offices in the cities of Zhongshan in Guangdong province and Mianyang in Sichuan province, making it the first foreign insurer to enter these markets. With the new licenses, Aviva-Cofco will now operate out of five cities in China. It already has offices in the cities of Beijing, Guangzhou and Chengdu.
The approvals closely follow the Chinese Insurance Regulation Committee’s (CIRC) announcement which ended geographical restrictions on overseas insurers, allowing them to open additional sales offices in each city and also expanding to all of China from 15 cities.
Zhongshan and Mianyang are major cities in the Guangdong and Sichuan provinces. Zhongshan is a key city in Guangdong province, with a population of 1.38 million. It ranks third in Guangdong in terms of personal insurance expenses. Mianyang is the second largest city in Sichuan province with a population of 5.22 million. Based on its GDP, it is the fifth largest city in West China.
Charles Anderson, regional managing director, Aviva Asia Pte Ltd, said: "Obtaining new licences in Guangdong and Sichuan provinces is very important to our growth strategy where we want to get first-mover advantage in key growth regions of China. Guangdong is China’s most progressive insurance market, while Sichuan Province is cited as China’s fastest growing insurance market in China in the future."
Aviva-Cofco is expanding very quickly in China. In January 2003, Aviva-Cofco set up its first operation business in Guangzhou. A year later in February and May 2004, it was awarded two licenses for Beijing and Chengdu. In January 2005, with regulatory approval, Aviva-Cofco is one of the first foreign insurers to write group insurance policies. In March 2005, it receives new licenses for Zhongshan and Mianyang.
Charles added: "We are very pleased with the smooth process and the pace at which the industry and the Aviva business are growing. Our growth path in China is on track."
Currently, Aviva-Cofco’s product portfolio is focused on individual long-term savings, juvenile and retirement planning policies. It markets more complex products through its direct sales force and broker channels, while selling the simpler and straight-forward policies through bancassurance tie-ups.
-ends–
Media enquiries:
Sue Winston, head of group media relations, +44 (0)20 7662 8221
Rob Bailhache, Financial Dynamics, + 44 (0)7771 565659
Notes to editors:
- Aviva is the world’s fifth-largest insurance group and the largest insurance group in the UK. Its principal business activities are long-term savings, fund management and general insurance, with world-wide premium income and retail investment sales from continuing operations of Ł30billion and assets under management of more than Ł240 billion.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
- Cofco is the fifth largest state-owned enterprise in China. It has been listed in the Fortune Global 500 enterprises for nine consecutive years.
- Aviva-Cofco Life Insurance Co Ltd is a joint venture between Aviva plc and Cofco Group and was established in Guangzhou in January 2003. It provides financial protection products including retirement/pensions plan, juvenile education scheme, family income protection, mortgage loans protection and health care protection.