German insurance giant Allianz obtained China's approval on Monday to set up a subsidiary in the Chinese mainland, making it the first foreign insurance company to do so in the country, the Shanghai Securities Journal reported.
The approval was among several other approvals granted by the China Banking and Insurance Regulatory Commission (CBIRC) on the same day to overseas financial institutions regarding their applications for more market access in the country.
According to Allianz, its Chinese subsidiary is scheduled to be established in 2019 with Allianz having 100 percent ownership of it.
Allianz expects the subsidiary to help it invest and expand in China in a more flexible way.
"We feel honored and proud to be the first foreign insurance company which establishes a subsidiary in China," said Oliver B?te, Allianz's president and CEO. "The move will help Allianz strengthen its market strategy in China."
B?te gave credit to the benign and long-standing bilateral relationship between China and Germany for the approval of its application, saying that he hopes that the subsidiary can provide both Chinese and foreign consumers with comprehensive financial and risk management services.
George Sartorel, regional CEO of Allianz in Asia Pacific, noted that China is at the center of the company's Asian strategy, saying that by establishing the subsidiary, Allianz will be able to fully integrate its global expertise with the needs of Chinese clients.
"We want to make our own contribution to the high-speed and innovative development of China's insurance industry," he said.
Allianz's business footprint in China dates back to as early as 1910. So far, the company has partially owned a number of Chinese companies as a majority or minority shareholder with the total number of its Chinese employees exceeding 2,000.
The company is quite optimistic about the prospect of China's insurance industry as its latest survey shows that the total insurance premium in China will keep growing at an annual rate of 14 percent over the next decade, the fastest pace around the globe.
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