Land of the rising insurance ventures

Allianz AG is following the lead of Manulife Financial Corp and American International Group (AIG) by expanding into China.
As reported in Shanghai Daily, Allianz has opened a branch in Hangzhou, capital of Zhejiang Province, which means the German insurer now own licenses to operate in eight Chinese mainland cities.
Currently, Manulife Financial Corp, a Canadian insurer, has 14 permits to operate in China and AIG holds eight licenses.
“We have a long-term plan to develop strategically in China,” Christian Molt, Allianz’s chief executive for China, told the Shanghai Daily. “We are planning to operate in Ningbo soon and you will definitely see more.”
The news agency reported Allianz also plans to tap the network of Industrial & Commercial Bank of China (ICBC), the nation’s largest lender, in which the German company purchased a minority stake last year, to sell more localized products.
Allianz said it would rename its China venture, effective Apr. 1, 2006, to Allianz China Life Insurance after changing its domestic partner. Dazhong Insurance, a Shanghai-based property and casualty insurer, sold its 49% stake in the venture, formerly known as Allianz Dazhong Life Insurance, to CITIC Trust & Investment Co last October.
According to Shanghai Daily, senior Allianz officials didn’t rule out the possibility of increasing its stake in an existing China venture if regulators allow, and forming a second insurance firm with partner ICBC.