CMG eyes Shanghai as base for new venture
The CMG Asia Group is likely to establish its life insurance joint venture in Shanghai in February, according to managing director Alan Beanland.
CMG Asia is the wholly owned subsidiary of Colonial Mutual Group, which last week won approval from the People's Bank of China to become the first Australian insurer to operate a joint-venture life insurance business in the mainland.
Colonial entered the Southeast Asian market in 1990 through CMG Asia, which has operations in Hong Kong, the Philippines, Malaysia, Indonesia and Thailand.
Shanghai would be its sixth operation in Asia and Mr Beanland said it was expected to be set up after the next Lunar New Year.
'We are still negotiating with a local partner about the joint venture,' he said. 'We may send four to five senior staff there, while the rest of the staff would be recruited in Shanghai.' Mr Beanland said the group would continue to expand its Asian network and planned to start operations in Vietnam and India.
'The Asian currency turmoil has had some impact on our sales volume in Asia. However, our policy in Asia will not be affected by the turmoil as we have a long-term commitment to build up our business in the region,' he said.
Mr Beanland said it would take between five and seven years before its mainland operations recorded a profit.
Referring to the Hong Kong business, he said CMG Asia would like to participate in the Mandatory Provident Fund (MPF) next year.
Mr Beanland said: 'Colonial is a leading company in Australia's pension business. This experience will surely help CMG Asia to establish MPF business in Hong Kong.' he said.
