Sino-US MetLife OK'd to Add Registered Capital to CNY800mn

BEIJING, Jun 24, 2008 (SinoCast China Financial Watch via COMTEX) -- BJCHF | Quote | Chart | News | PowerRating -- Sino-US MetLife Insurance Co., Ltd., the Beijing-based arm under MetLife, a leading life insurer in the US, recently gained Chinese regulatory approval to enlarge its registered capital from CNY 500 million to CNY 800 million.

Beijing Capital International Airport Co., Ltd. (SEHK: 0694) and MetLife, the shareholders of Sino-US MetLife, will invest CNY 150 million into their joint venture each.

However, previously in March 2008, Beijing Capital International Airport was rumored to sell its 50% stake in Sino- US MetLife to Shanghai Alliance Investment Ltd., the Chinese shareholder of United MetLife Insurance Co, the Shanghai-based arm under MetLife, in a bid to merge both arms and set the new headquarters in Shanghai, the nation's financial hub.

But the story was not confirmed by Beijing Capital International Airport.

In March 2004, MetLife was licensed to open the Sino-US 50- 50 life insurance joint venture Sino-US MetLife with Beijing Capital International Airport. And in August 2005, the US life insurer launched United MetLife in Shanghai.

Lately, there was a saying that the two arms would merge with each other. But Brent Bell, vice president for international division at MetLife, said that neither international division of MetLife nor Beijing Capital International Airport had made a decision on such merger. And William Toppeta, president of international division at MetLife, stated that the headquarters of MetLife had not decided yet.

In fact, MetLife dose not hurry to merge the two arms, aiming at its faster expansion in China.

Pursuant to Chinese regulations, a joint venture can open only two branches in China each year. MetLife's two arms enable it to open more branches and capture a larger market share than only one arm can do.

By now, United MetLife has shown a strong presence around the Yangtze River Delta, while Sino-US MetLife has focused on other economically fast-growing regions across the country, such as Beijing, Chongqing, Guangzhou, and Shenyang. Both arms operate independently and cooperatively, Brent Bell said, and they are making utmost to meet local demand.

The two arms adopt the same brand of MetLife and the same logo. They are now teaming up with Citibank in bancassurance and investment-link insurance. And Sino-US MetLife also join forces with China Merchants Bank (SHSE: 600036) and Bank of China (SEHK: 3988 and SHSE: 601988) to sell accident insurance policies, sickness insurance policies, and protection insurance policies in outlets of these banks.

(USD 1 = CNY 6.87)

From www.cb.com.cn, Page 1, Monday, June 23, 2008 info@SinoCast.com

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