China’s Union Life Granted Permission to Establish Jilin Branch

Union Life Insurance Co. Ltd., a national life insurance stock company in China, was approved by the Chinese regulator to set up a branch in Jilin province, the northeastern part of China.

The China Insurance Regulatory Commission said the construction period of the new branch will last for six months, during which the insurer is not allowed to operate any insurance business.

Incorporated in 2005, Union Life was founded by six companies including Yongtai Real Estate (Group) Co. Ltd, with initial registered capital of 300 million yuan (32.1 million euros). Its headquarters is in Wuhan, a city located in the central part of China.

Shareholders of the insurer include China-based Zhongfa Group, Italy-based Intesa Sanpaolo SpA and Japan-based Taiyo Life Insurance Co.

By the end of 2005, the insurer recorded total premium income of 579 million yuan, while in the first four months of 2006, its premium income was 495 million yuan. Among the premium income portfolio, bancassurance accounted for 53%, group insurance was 40%, while personal insurance was 7%, said the insurer.

In 2006, Intesa Sanpaolo SpA acquired a 19.9% equity interest in Union Life through its subsidiary, Eurizon Financial Group SpA, becoming the second-largest shareholder and the first foreign shareholder of the insurer.

A year later, Taiyo Life acquired a 5.09% equity interest in Union Life for a consideration of 8 yuan per share, becoming the second foreign shareholder of the Chinese insurer.

Currently, Union Life has branches in Shanghai and Beijing as well as several Chinese provinces including Hubei, Henan, Jiangsu, Shandong, Heilongjiang, Guangdong, Hebei, Zhejiang, Liaoning and Inner Mongolia.

The insurer said it will finish its strategic layout in the whole country by setting up more than 24 provincial-level branches by 2008.

(By Rebecca Ng, Hong Kong news editor: [email protected])