MetLife plans merger of JVs
By Zhang Fengming |
February 3, 2010, Wednesday
|
Print Edition
Print Edition
METLIFE Inc plans to merge its two life-insurance joint ventures in China to consolidate its business in the rapidly growing market.
The largest life insurer in the United State has two 50-50 joint ventures in China - United MetLife Insurance Co in Shanghai and Sino-US MetLife Insurance Co in Beijing.
Under the plan, the Shanghai venture's domestic partner - Shanghai Alliance Investment Ltd - will buy the stake held by Capital Airports Holding Co in Sino-US MetLife, the New York-based insurer said. Metlife and Shanghai Alliance will then merge Sino-US Metlife with United MetLife Insurance Co.
"China is a key strategic market for MetLife. By having a single partner across the country we can create a stronger brand and portfolio of offerings for the market," said Eugene Marks, executive vice president and head of the Asia-Pacific region for MetLife.
"This will allow us to accelerate growth and in turn provide increased value to our customers," Marks added.
MetLife's two ventures had a combined premium income of 2.96 billion yuan (US$433 million) last year, contributing to less than 1 percent of China's insurance market.
The US insurer acquired the stake in United MetLife Insurance following its US$11.5 billion acquisition of Travelers Life & Annuity from Citigroup in 2006.
The planned merger is in line with the Chinese regulator's push for foreign investors to focus on one joint venture in China.
In December, Netherlands' ING said it would focus on its Beijing joint venture and sell its stake in a Shanghai entity to China Construction Bank.
Canada's Manulife Financial Corp pulled out from one of its two joint ventures in China in September.
The largest life insurer in the United State has two 50-50 joint ventures in China - United MetLife Insurance Co in Shanghai and Sino-US MetLife Insurance Co in Beijing.
Under the plan, the Shanghai venture's domestic partner - Shanghai Alliance Investment Ltd - will buy the stake held by Capital Airports Holding Co in Sino-US MetLife, the New York-based insurer said. Metlife and Shanghai Alliance will then merge Sino-US Metlife with United MetLife Insurance Co.
"China is a key strategic market for MetLife. By having a single partner across the country we can create a stronger brand and portfolio of offerings for the market," said Eugene Marks, executive vice president and head of the Asia-Pacific region for MetLife.
"This will allow us to accelerate growth and in turn provide increased value to our customers," Marks added.
MetLife's two ventures had a combined premium income of 2.96 billion yuan (US$433 million) last year, contributing to less than 1 percent of China's insurance market.
The US insurer acquired the stake in United MetLife Insurance following its US$11.5 billion acquisition of Travelers Life & Annuity from Citigroup in 2006.
The planned merger is in line with the Chinese regulator's push for foreign investors to focus on one joint venture in China.
In December, Netherlands' ING said it would focus on its Beijing joint venture and sell its stake in a Shanghai entity to China Construction Bank.
Canada's Manulife Financial Corp pulled out from one of its two joint ventures in China in September.
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