China Life forges alliance with GE
Updated: 2007-09-25 09:38
China Life, the country's largest insurer, yesterday signed a strategic cooperation memorandum with General Electric of the US to explore joint venture opportunities in a wide range of financial businesses.
Jeff Immelt, GE's chairman and CEO, said potential strategic alliance with China Life could take many different forms. By combining China Life's wide distribution network on the mainland with GE's expertise in a range of financing services, the two parties are looking to launch new investment products to cater to the rapidly increasing demand of retail customers.
Immelt added that the cooperation would also help bring GE's technologies to China Life to strengthen its competitive edge.
Liu Tingan, China Life's secretary of the board, said possibilities of equity investments between the two groups couldn't be ruled out. Further details in partnership would be revealed as the negotiations progress.
Yang Chao, president of China Life Insurance Group said the proposed strategic cooperation between the two groups would consolidate their respective advantages. "We may learn a lot from GE's experience in the international market."
China Life's life insurance premium income totaled 209 billion yuan (US$27.8 billion) in 2006, a 51 percent share in the domestic market.
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