AXA Accelerates Expansion in China

BEIJING, Jul 30, 2008 (SinoCast China Financial Watch via COMTEX) -- AXA | Quote | Chart | News | PowerRating -- Citibank and AXA-Minmetals Assurance Co., Ltd., a Sino-French insurance joint venture between AXA Group and Minmetals Group, announced on July 28, 2008 that they were scheduled to launch an all-round retirement wealth management plan for Citibank customers in Guangzhou and Shenzhen, two affluent cities in south China.

It signals that AXA Group, a global leader in financial protection, is further expanding into the Chinese insurance market. And noticeably, Victor Kuk, chief executive officer of AXA General Insurance Hong Kong Ltd., an Asia arm under AXA, disclosed that AXA has targeted an acquisition in the country. But the CEO did not say any details about the deal.

AXA forayed into China in 1989. It expanded at a fast pace mainly via mergers and acquisitions. In December 2006, AXA bought Winterthur Insurance Shanghai Branch from Credit Suisse for CHF 12.3 billion, in a bid to take over Winterthur's property insurance subsidiary in China and its equity investment into Taikang Life Insurance Co., Ltd.

In addition, in June 1999, AXA and the Chinese Minmetals Group jointly established AXA-Minmetals Assurance, the first Sino-French insurance company in China. By now, AXA has been licensed to run property insurance and life insurance businesses in the country.

Besides, in 2007, the asset management arm under AXA set up AXA-SPDB Investment Managers Co., Ltd. in Shanghai, in partnership with Shanghai Pudong Development Bank (SHSE: 600000) and Shanghai Dragon Investment Co., Ltd. It was a sign of AXA's formal entry into the Chinese asset management sector.

Apart from AXA's expansion in China, the group's global expansion is progressing as well. Previously on July 22, it acquired ING Seguros, the third largest insurer in Mexico, an effort to show a stronger presence in South America. But the details about the deal have not been disclosed yet.

By now, AXA has stretched its networks to more than 50 countries and territories across the world, with chief focuses on Europe, North America, and the Asia-Pacific region. It serves 67 million clients worldwide and it has 400,000 shareholders. As of December 31, 2007, it had managed assets of EUR 1.281 trillion. And for the full year 2007, its revenues amounted to EUR 93.6 billion and adjusted earnings reached EUR 6.1 billion.

On top of that, AXA is now the biggest life and health insurer all over the world, according to Fortune, one of the most famous business magazines globally.

(USD 1 = CNY 6.83)

From www.hexun.com, Page 1, Tuesday, July 29, 2008 info@SinoCast.com

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