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MetLife merges two China JVs
By Zhang Fengming |
February 2, 2010, Tuesday
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Online Edition
Online Edition
MetLife Inc, the largest life insurer in the US, plans to merge its two life-insurance joint ventures in China, hoping the consolidation will increase its share of China's fast-growing market.
The consolidation is in line with China's insurance regulator's plan for foreign insurers to focus their business in a single venture. Canada's Manulife Financial Corp. pulled out from one of its two joint ventures in China in September and ING Groep NV has said it plans to sell one of its two ventures to China Construction Bank Corp.
Under the plan, MetLife partner Capital Airports Holding Co will sell its 50 percent stake in Sino-US MetLife Co to the US insurer's other joint venture partner in China, Shanghai Alliance Investment Ltd, the US insurer and the Shanghai company said jointly today.
MetLife and the investment arm of the Shanghai government will then merge Sino-US MetLife with United MetLife Insurance Co, the US insurer's 50-50 joint venture with Shanghai Alliance. The US company acquired the stake in United MetLife Insurance following its US$11.5 billion acquisition of Travelers Life & Annuity from Citigroup in 2006.
China's insurance regulator has given preliminary approval for the plan, MetLife said, without providing financial details. The integration of the ventures will maximize their competitive strengths, MetLife and Shanghai Alliance said.
MetLife's two ventures had combined premium income of 2.96 billion yuan (US$433 million) last year, giving it less than 1 percent of China's insurance market, data from the Chinese government show.
The consolidation is in line with China's insurance regulator's plan for foreign insurers to focus their business in a single venture. Canada's Manulife Financial Corp. pulled out from one of its two joint ventures in China in September and ING Groep NV has said it plans to sell one of its two ventures to China Construction Bank Corp.
Under the plan, MetLife partner Capital Airports Holding Co will sell its 50 percent stake in Sino-US MetLife Co to the US insurer's other joint venture partner in China, Shanghai Alliance Investment Ltd, the US insurer and the Shanghai company said jointly today.
MetLife and the investment arm of the Shanghai government will then merge Sino-US MetLife with United MetLife Insurance Co, the US insurer's 50-50 joint venture with Shanghai Alliance. The US company acquired the stake in United MetLife Insurance following its US$11.5 billion acquisition of Travelers Life & Annuity from Citigroup in 2006.
China's insurance regulator has given preliminary approval for the plan, MetLife said, without providing financial details. The integration of the ventures will maximize their competitive strengths, MetLife and Shanghai Alliance said.
MetLife's two ventures had combined premium income of 2.96 billion yuan (US$433 million) last year, giving it less than 1 percent of China's insurance market, data from the Chinese government show.
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