Groupama in China : Opening of a representative office in Beijing

7 January 2009

Groupama, the third French multi-line insurance group, has received authorisation to open a representative office in Beijing with a view to obtaining a licence to conduct life insurance business in China.

The authorisation was officially notified by the China Insurance Regulatory Commission (CIRC) on 30 December 2008.

 

“In parallel with its development in non-life insurance, Groupama hopes to obtain a life insurance licence in China to be able to offer policyholders comprehensive protection”, said Jean-François Lemoux, General Manager Groupama International. “The life insurance market in China, which collects two-thirds of insurance premiums, is growing rapidly due to changes in Chinese society. The opening of this new office – and I would like to thank the Chinese authorities for responding favourably to our request – is an important step in the process which should eventually enable us to conduct all types of insurance business and so participate fully in the huge potential of the Chinese insurance market”.

 

Before applying for a life insurance licence, under Chinese regulations companies are required to have had, for 2 years, a Representative Office dedicated specifically to obtaining the licence. Groupama’s existing office in Beijing is for non-life insurance, hence the need to set up a new office, the opening of which has just been authorised. The Groupama Vie Representative Office is scheduled to open in March 2009.With a view to submitting a life insurance licence application in 2 years, the Group will consider the two options open to them: either searching for a local partner to set up a joint venture or acquiring an interest in a Chinese life insurance company.

 

Groupama in China today

Groupama has been present in Sichuan* since October 2004 as a branch of Groupama S.A. with a non-life insurance licence and sells multi-risk property damage and health insurance for farmers, city-dwellers, the self-employed and SMEs. A motor insurance product was launched in late 2008 to speed up our development in the non-life market, sold primarily through the Groupama employee and agents network. The branch now has more than 100 employees working in 21 local branches, 17 of which are in rural areas. The portfolio currently comprises almost 15,000 policies.Groupama’s trading activities in China were authorised by the granting of a non-life insurance licence by the China Insurance Regulatory Commission (CIRC) in June 2003** and administrative approval issued on 20 August 2004***. The Group is the first European insurer authorised to operate without an equity partner in western China.

Groupama is already trading in Hong Kong through the branch of Gan Assurances Hong Kong which manages a non-life portfolio.

*China’s third largest province in population terms (85 million people)
**See Press Release of 16 June 2003
***See Press Release of 8 September 2004