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German insurance Co to open more branches in China

(Xinhua)
Updated: 2009-05-27 17:31

The Allianz Group, a global insurance company, plans to expand business in China despite the current global financial downturn.

The company held an inauguration ceremony for its eighth Chinese branch in Jinan of Shandong Province Wednesday.

The area's life insurance market was ranked the country's fourth largest with a market value of 45.28 billion yuan ($6.66 billion) in 2008, a 43.3 percent growth over the previous year, statistics show.

Allianz will set up a ninth branch in Wuhan, the provincial capital of Hubei later this year.

Wilfred John Blackburn, CEO of Allianz China Life Insurance Co Ltd, said the group's strong financial strength allowed it to seek market expansion while most of its counterparts did not have the resources to pick up investment speed.

Currently, foreign insurance companies have a four to six percent market share of the Chinese insurance industry which is dominated by China Life, Ping An Insurance Group and China Pacific Insurance Group.

Allianz China occupies nearly one percent of the market share, according to Blackburn, who plans to be more competitive by serving clients face-to-face by expanding regional offices.

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Heinz Dollberg, executive vice president of the company's Asia Pacific Division said growth was clearly the company's priority, but he emphasized the importance and potential to make profits in China.

Allianz China now has seven branches located in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou, Chengdu and Nanjing. It employs more than 15,000 agents and has cooperative links with more than 12 Chinese banks.

China only allows foreign insurance companies to open two regional offices every year. Blackburn says selection of sites for 2010 will depend on GDP, population density and market potential.

Allianz Group is headquartered in Munich in Germany and is the biggest insurance group worldwide in terms of profits. It opened its first Chinese branch in 1999.

In 2008, it raked in 92.6 billion euros in 70 countries over the world, with the Asia-Pacific region contributing 12 billion euros, according to Dollberg.