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The Dutch financial giant ING Group announced yesterday that its life-insurance joint venture with the Beijing Capital Group has started business.
The new company - named ING Capital Life Insurance Co Ltd - is the first joint venture in the life insurance business in Dalian, a major port city in Northeast China's Liaoning Province.
The city is the only one in northern China where foreign life and non-life insurers are allowed to provide services immediately following the nation's entry to the World Trade Organization (WTO) a year ago.
Analysts said the new business suggests foreign and domestic life insurers are poised to aggressively explore China's northern and northeastern market.
"The northern China market promises great potential for us," said Bartholomew Ng, China manager of ING Asia-Pacific.
"Compared to the southern market, the economic momentum of northern regions may not appear as overwhelming, but we also see fewer competitors here."
ING's Dalian operation is the company's second life insurance joint venture in China. The Dutch group has already launched a joint venture - Pacific Antai Life Insurance Co Ltd - with Shanghai-based China Pacific Insurance Co in the late 1990s.
With an initial capital base of 200 million yuan (US$24 million), ING and Beijing Capital Group each own half of the joint venture equity.
ING officials said the company had picked Capital Group as its partner mainly because the Beijing company has an excellent distribution system and well-established financial service platform.
Moreover, the Dutch group hopes the joint business will blaze a trail for its long-term co-operation with Beijing Capital Group in the future.
"I am expecting to team up with Beijing Capital Group to explore overseas market," said Patrick Poon, a member of the executive committee of ING Asia-Pacific.
Liu Xiaoguang, president of Beijing Capital Group, said establishing the joint venture insurer will greatly enhance the company's strength in developing its financial business, one of its three key arms. The other two are real estate and infrastructure.
Liu said his company has successfully restructured its real estate business and is preparing for an overseas listing.
(China Daily December 18, 2002)
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