|
Allianz to expand core business in China
By Chang Tianle (China Daily)
Updated: 2004-04-02 10:43
Allianz Group will continue to expand its core business in China, convinced
by the enormous market potential and improving regulatory environment, according
to Michael Diekmann, chairman and CEO of the the company.
"Allianz Group has
always believed in the great prospects of China and its economy," he said in
Shanghai on Wednesday. "I want to confirm our continued commitment to China
today."
Allianz has a full range of services in China including insurance,
fund management and banking.
"While we maintain a widespread presence across
the region, our main strategic focus is on markets with high growth potential
for insurance products and sufficient scale to provide substantial earnings."
Werner Zedulius, a board member in charge of Allianz's growth markets, added.
However, its premium income from the Chinese mainland still remains
small.
Last year, its loss-making life insurance joint venture Allianz
Dazhong Life Insurance recorded gross written premiums of 166.6 million yuan
(US$20.2 million), up 36 per cent from 2002.
Asked about the news that its
joint venture partner Dazhong Insurance may pull out its investment, Zedelius
said, "It's an on-going process. We would like not to comment on this."
It's
wholly owned property and casualty operation in Guangzhou generated premiums of
35 million yuan (US$4.3 million) in one year, surpassing business
targets.
Looking ahead, Allianz is optimistic. "The Chinese Government's
assurance to liberalize its insurance and financial services industry in line
with World Trade Organization agreements has already played a significant role
in allowing Allianz to grow its presence here."
Statistics show that more
than 40 per cent of China's estimated 10 trillion yuan (US$1.2 trillion) in
household savings have been set aside for education, healthcare and old age
needs. And insurance penetration is still low even in major cities like Beijing,
Shanghai and Guangzhou.
"We expect it to reach substantially higher levels
over the next decade," he said.
For foreign insurers like Allianz, the market
potential is staggering.
He cited Boston Consulting Group's prediction that
the life insurance market could grow by 20 per cent per annum over the next four
years, and earn total premiums of 830 billion yuan (US$100 billion) by 2008.
At the same time, the non-life market is expected to surpass 20 billion yuan
(US$2.4 billion).
As part of Allianz's strategy to establish a nationwide
presence, it is preparing to launch a branch office of its Shanghai-based life
and health joint venture in Guangzhou in the second half of the year, while
preparing for group health insurance.
In fact, it plans to undertake both
life and non-life operations in Shanghai, Beijing and Guangzhou and eventually
all key markets in China.
"We don't spend money for the sake of it, we do it
in a serious and reasonable way," Zedelius added.
It's joint venture fund
company with Guotai Jun'an also witnessed strong results since its first fund
was launched last year.
Its two funds have received an overwhelming response
from the market.
Meanwhile, Allianz's Euler Hermes is now well-placed to meet
the growing need for credit insurance in China by partnering with Sinosure, the
country's official export credit insurance agency.
Dresdner Bank, which was
acquired by Allianz in 2001, has filed to offer derivatives and hedge products,
taking advantage of the improving regulatory environment, said the bank's
general manager Hans Schniewind.
Among all financial institutions in China,
Allianz has the most comprehensive services.
|
