New entrant picks overseas office sites
Newly formed China Reinsurance's next offices outside the mainland could be in Hong Kong and Singapore as it expands its international presence, officials said.
China Reinsurance was officially established on Thursday in the wake of last year's instruction from Beijing to break up People's Insurance of China (PICC) into three separate companies.
PICC Property has been renamed the People's Insurance Co China, the same name as the former insurance monolith, while China Life Insurance will be officially formed by the end of this month.
PICC's general manager is Sun Xiyue and China Life's is He Jiesheng.
A China Reinsurance official said yesterday the company was actively setting up more representative offices overseas to expand its foothold in the international market.
It has liaison offices in Europe and the United States.
'Hong Kong and Singapore will have priorities for the establishment of overseas liaison offices,' the official said.
'But the plan is not going to happen in the short term, but in a matter of two to three years.' China Reinsurance, formerly called PICC's reinsurance department set up in 1996, was officially re-established this week with a registered share capital of three billion yuan (about HK$2.79 billion), up from two billion yuan.
Under the mainland's re-insurance law and regulations, 20 per cent of insurance policies have to be underwritten by domestic re-insurers.
The remainder can be underwritten by international firms.
The law effectively protects China Reinsurance, presently the only mainland re-insurance company.