CITIC-Prudential Life Insurance Cleared for Fujian Branch in China

GUANGZHOU, China, Sep 30, 2008 (A. M. Best via COMTEX) -- PUK | Quote | Chart | News | PowerRating -- CITIC-Prudential Life Insurance Company Ltd., a 50-50 joint venture between China-based CITIC Group and U.K.-based Prudential plc, won permission to establish a new branch in Fujian province on the southeastern coast of China.

Tang Zhiwei was named general manager of the Fujian branch, according to the China Insurance Regulatory Commission.

Headquartered in Guangzhou, CITIC-Prudential Life was established in October 2000, with registered capital of 1.82 billion yuan (185.3 million euros).

From 2001 to 2007, CITIC-Prudential Life recorded an annual premium income growth rate of 71%, the insurer said.

By the end of 2007, the company established branches in five provinces and three municipalities as well as an autonomous region in China, including Guangdong, Beijing, Jiangsu, Shanghai, Hubei, Shandong, Zeijiang, Tianjin and Guangxi.

It also developed life insurance businesses in 24 Chinese cities, with 21,000 staff and insurance sales agents, providing protection, savings, investment, retirement and medical insurance products and services to about 400,000 customers in China.

In the first half of 2008, the insurer?s U.K. parent, Prudential plc, recorded new business growth of over 50% in China.

In July, Prudential renewed and extended its agreement with Standard Chartered plc, a London-headquartered bank with listings in both the United Kingdom and Hong Kong, providing health products through bancassurance with Standard Chartered in Asia to 2016.

The U.K.-based insurer said the partnership enables it to market and distribute its investment-linked, savings and protection insurance products to Standard Chartered customers in Asia, including Hong Kong, Singapore, Malaysia, Japan, Thailand, Taiwan, China and Korea.

By the end of June 2008, Prudential's new business annual premium equivalent in Asia grew by 14%, building on the 48% growth achieved in the first half of 2007 as new business profit increased 15% to 336 million pounds.

Operating profit before tax from the Asian life business under International Financial Reporting Standards rose 28% to 102 million pounds, while net cash remittances to the Group were 11 million pounds, Prudential said.

Prudential added it is confident of doubling Asia?s 2005 new business profit by the end of 2008, a year ahead of its previously stated target of 2009.

(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com)

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