Sompo Cleared for Jiangsu Branch in China

Sompo Japan Insurance Inc. [85258] has been cleared by the China Insurance Regulatory Commission to set up a new branch in the eastern coastal province of Jiangsu in China.

The new branch office in Suzhou city is set to launch in the first half of 2010, offering nonlife insurance and services in Jiangsu province, according to Sompo.

The Japanese nonlife insurer is seeking to expand its presence in China with the aim to offer comprehensive nonlife insurance across the country, said Sompo in a statement.

The Liaoning-based nonlife insurer has branches in Guangdong province and Shanghai. With four offices in China, Sompo has a presence in major economic zones in the northern, eastern and southern regions. Sompo said this is an important development to strengthen its business position in the China market.

Sompo China set up its operation in Dalian city of Liaoning province in northeastern China in 2005, with capital of 500 million yuan (US$73 million). Its premium income was 118 million yuan in 2008, up from the previous year's 82 million yuan, according to the CIRC.

Sompo Japan Insurance Inc. currently has a Best's Financial Strength Rating of A+ (Superior).

(By Iris Lai, Hong Kong bureau manager: [email protected])