What’s new: Global insurance giant Allianz Group dropped out of a joint venture with China Pacific Insurance Co. Ltd. (CPIC) after setting up a wholly owned China unit in January.
The China Banking and Insurance Regulatory Commission approved the transfer Dec. 25 of Munich-based Allianz’s 23% stake in CPIC Allianz Health Insurance, the joint venture founded in 2014 between Allianz Group and CPIC and a subsidiary.
After the transfer, CPIC Allianz Health Insurance will change its name to CPIC Health, Caixin learned. CPIC will hold 85% of the unit, and its subsidiary China Pacific Life Insurance Co. Ltd. will hold 15%.
The background: As a result of China’s financial-sector opening-up and policies encouraging investment in China by foreign insurance institutions, Allianz Group set up China’s first fully foreign-owned insurance holding company in January. Allianz (China) Insurance Holding Co. Chairman Sergio Balbinot said at the time it hoped to explore new business in China, such as the pension business.
In 2019, the Allianz-CPIC joint venture turned a profit for the first time since its inception. In the first three quarters of 2020, the company generated insurance premium revenue of 5.48 billion yuan ($839 million), an increase of 42.9% from the same period a year ago. It swung to profit of 71.82 million yuan from a loss of 23.14 million yuan for the same period a year ago.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
