Have you met the new MetLife today?
By Song Hongmei (chinadaily.com.cn)Updated: 2006-05-24 17:20
"Strategically it's a good move," Donald Light, an insurance analyst with Celent LLC, was quoted by Reuters as saying. "Right now MetLife's international division contributes less than 10 percent of revenues. It has to go where the growth is."
MetLife rose 0.6 percent or 28 cents to US$51.03 a share in midday New York Stock Exchange trading on May 19.
 Vice mayor of Shanghai Feng Guoqin (C), MetLife Inc chairman Robert Henrikson (4th L), US consul general in Shanghai Kenneth Jarrett (3rd L), and officials from the municipal government, US insurance giant and its Chinese partner pose for a group photo during a celebration for the launch of the newly named joint-venture life insurance company in Shanghai on May 19, 2006. [chinadaily.com.cn] |
Sino-US MetLife general manager Qi Laiping, also thinks the insurance market in China is big enough for both companies to develop. Sino-US MetLife has currently expanded its business to cities in the north, south and west, but not in the east where United MetLife is based.
New MetLife unit
The JV targeted Citigroup's clients when it started operations in August 2005. The insurer will focus on selling policies through bank insurance outlets, telephone marketing and agencies in China, senior officials of MetLife Inc said on May 19 during the celebration in Shanghai.
"We will take advantage of our banking experience and boost the
venture's business through lenders," said United MetLife chairman Shen Ruolei, a
former top executive from the Industrial and Commercial Bank of China (ICBC),
China's largest bank.
United MetLife has set up co-operative relations with some important local banks such as ICBC, China Merchants Bank and Bank of Communications, which will be part of its nationwide network of insurance sales, said Shen.
Asked if MetLife had plans to invest directly in a Chinese bank to boost its connection to the industry, senior vice president Charles E. Symington said such a move could be an option.
Life insurance premiums in China collected by banks surged 228 percent in the first quarter this year, accounting for 37 percent of the total. Banks sell policies to their clients in their networks on behalf of insurers and get a commission for the work.
Life insurance premiums rose 14.2 percent to 364.62 billion yuan (US$45.5 billion) in 2005, according to the China Insurance Regulatory Commission (CIRC).
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