Swiss company Winterthur has emerged as the candidate most likely to become the next overseas insurance company in China.
It is believed Germany's Allianz has been overlooked in favour of Winterthur, as Sino-German relations in June turned sour over human rights issues.
Although yet to receive official approval to set up a property insurance branch in Shanghai, a source in Beijing confirmed it was imminent.
Winterthur is expected to become the fourth foreign insurance company to obtain licence after Canada-based Manulife received preliminary approval for a joint venture in May.
Winterthur vice-president Fanny Reed said the company had received a positive response from the People's Bank of China in Shanghai.
'They [the officials] are very positive about our application,' she said.
'But we have not yet received any formal notification.' Initial investment in the Shanghai branch would be 20 million yuan (about HK$18.6 million) as required by the government, she said.
