Joint Venture Entered with China CITIC
Prudential PLC
20 December 1999
Prudential & China CITIC to form Sino-British life insurance
joint ventureChina
Prudential plc and China International Trust & Investment
Corporation (CITIC) have signed a memorandum of understanding
(MOU) to form a joint venture life insurance partnership in
Guangzhou, China. Subject to regulatory approval, the
establishment of this joint venture company will mark the
first Sino-British life insurance operation in China.
The partnership between Prudential and CITIC combines the
significant resources and expertise of these two premier
financial institutions to provide life insurance products and
services in China. Prudential and CITIC will together commit
an initial capital investment of RMB200million (£15.6 million).
The partnership follows the announcement in May this year
that Prudential was the first UK life insurance company to be
awarded a life insurance operating licence by the Chinese
government.
Mark Tucker, Chief Executive of Prudential Corporation Asia
said, 'Our partnership with CITIC provides a strong
foundation on which to build a substantial life insurance
business in China. In partnership with CITIC we look forward
to helping to meet the savings and insurance needs of its
people. China will be a very important part of Prudential's
portfolio in Asia and the establishment of this new operation
underscores once again Prudential's confidence and long-term
commitment to the region. '
Mr. Chang Zhen-ming, Executive Vice President of CITIC said,
'We at CITIC are delighted to form a joint venture
partnership with Prudential. With CITIC's established
background and expertise in financial services, including
banking, securities and a trust business, our entry into the
life insurance market will enable us to provide a full and
comprehensive range of financial products and services for
our customers'.
Prudential and CITIC will jointly submit to the China
Insurance Regulatory Commission (CIRC) detailed business and
marketing proposals for the launch of a range of life
insurance products and services. Prudential and CITIC hope
to launch the new operation in Guangzhou around the middle of
Year 2000.
For further information contact:
Media Jeremy Reynolds 020 7548 3721
Analysts Carys Walsh 020 7548 3823
Notes to editors
1. Prudential is the UK's largest life insurance company in
Asia with offices in ten countries/areas and a network of
over 19,000 agents and staff. The launch of the life
insurance joint venture company in China will bring
Prudential's significant Asian portfolio to eleven, which
already includes Hong Kong SAR, Singapore, Malaysia, the
Philippines, Thailand, India, Indonesia, Vietnam, Taiwan and
Japan.
2. Prudential has five representative offices in China
(Guangzhou, Beijing, Shanghai, Tianjin and Shenyang.)
and has been very active in supporting investment,
educational, training and cultural initiatives there for
over ten years.
3. The China Insurance Regulatory Commission (CIRC) was
formed in 1998 by the PRC Government. It has a mandate
from the State Council to regulate and supervise the
development of the insurance industry in China. It is
also responsible for formulating industry policy,
enforcing laws and regulations that relate to insurance
matters, disciplining misconduct and issuing insurance
licences. Since 1992, selected foreign insurance
companies with financial resources and product expertise
have been invited to enter China's insurance market.
The current policy permits foreign life insurers to
operate in the form of a joint venture partnership with
a Chinese corporation in the cities of Shanghai and
Guangzhou.
4. Established in 1979, CITIC (China International Trust &
Investment Corporation) is a state-owned enterprise
formed under the direct leadership of the State Council
of the People's Republic of China. CITIC is actively
involved in the field of finance, investment and
services. To date, CITIC's assets totalled RMB224.5
billion (USD28 billion).
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