Prudential expansion march, 8th regulatory approval for China |
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Fri, 20 May 2005 20:10
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Prudential Plc, second largest insurer in UK., has been conferred with an operating license for the eight city in China. Prudential who operates through the CITIC, Prudential Life Insurance Co., a joint venture with China International Trust & Investment Corp is extremely positive about the recent development.
Besides establishing and strengthening base in China, “the regulatory approval for Zhongshan, in the Guangdong province of Southern China will provide accessibility to a population of 2.5 million people”, the London – based insurer said in a Regulatory News Service Statement.
Prudential kick started operations in 1923 in Asia and now has almost 75% per cent of its business outside UK. It sells savings products in China through its joint venture and also offers additional policies encompassing health and accident cover.
| The First European life insurer to accolade of winning regulatory approvals will have to face some competition with American International Group Inc. as it expands in China, where 1.3 billion population are exploring for commercial insurers, due to the reduced welfare benefits by the government.
Chief Executive of Prudential Corporation Asia, Mr. Mark Norbum further adds that “Prudential may receive regulatory approval to operate in 10 Chinese cities by the end of the year”, however admits that “This latest license for Zhongshan highlights the strong momentum our business has established.”
With the shares rising to 1.5 p and closing at 497.5p today, the company also declared its annual results in March, which reflected that profits had risen t 19% in Asia and it identified “excellent growth prospects” throughout the region, particularly in China and India.
With an employee base of 8,000 staff and agents in China, Prudential has been slowly and steadily building presence in China since 2000, when it commenced operations in the Southern boomtown of Guangzhou. The company was significantly recognized through the launch of Beijing operation in August 2003 and since then gained approvals to operate in cities like Shanghai.
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