Aviva, the world’s fifth largest insurer, has received regulatory approval for its joint venture company, Aviva-COFCO, to establish a branch based in Shijiazhuang, the capital city of Hebei Province.
Aviva, the world's fifth largest insurer, has received regulatory approval for its joint venture company, Aviva-COFCO, to establish a branch based in Shijiazhuang, the capital city of Hebei Province.
Aviva is the fourth largest foreign player in the country by premiums.1 The new branch licence will bring the total number of cities in which Aviva-COFCO has operations to 17, comprising seven branches in major cities and 10 further sub branches.
Shijiazhuang, a relatively new city, has grown rapidly since the 1950s and now has a population of 9 million. With its rapidly developing economy, the Hebei Province is of strategic importance to Aviva-COFCO's growth ambitions in China. In 2006, Hebei's total life premiums reached RMB17.12 billion,2 a 17.7% increase on the previous year and well ahead of more mature markets such as Beijing and Shanghai.
Charles Anderson, regional managing director of Aviva Asia, said: "Our move into Hebei Province signals the gathering pace of our expansion across China and brings us closer to realizing our ambition of a 10 per cent new business market share in 10 provinces by 2010. Our immediate focus is on the training and development of a professional insurance workforce to serve our rapidly growing multi-distribution channel business."
1 According to latest figures from the China Insurance Regulatory Commission
2 Equivalent to US$2.2billion (based on exchange rate US$1 = RMB7.8125)
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Notes to editors:
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2005.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.
- In Asia, Aviva has long-term savings operations in Singapore, India, Sri Lanka and Hong Kong. In China, Aviva-COFCO Life Insurance Limited is a 50:50 joint-venture with China National Cereals, Oils and Foodstuffs Import and Export Corporation (COFCO), one of China's largest State owned enterprises.