CBIRC Allows AIA to Incorporate as Wholly-owned Subsidiary in China

Source: Regulation Asia Editors, Regulation Asia 2020-06-24

The new subsidiary will become the first wholly foreign-owned life insurance company approved for incorporation in mainland China.

The CBIRC (China Banking and Insurance Regulatory Commission) has granted approval to AIA to convert its Shanghai branch into a wholly-owned subsidiary.

The subsidiary will be incorporated in Shanghai under the name AIA Life Insurance Co Ltd, making it the first wholly foreign-owned life insurance company approved for incorporation in mainland China.

AIA will next apply for separate regulatory approvals to establish branches of the newly incorporated subsidiary in additional territories in the mainland.

“AIA traces its roots to Shanghai in 1919 and it is entirely fitting to base our new subsidiary in the city where we began,” said AIA group chief executive and president Lee Yuan Siong. “Since AIA’s return to mainland China in 1992, we have focused on contributing meaningfully to the sustainable development of the life insurance industry.”

AIA’s business operations in the mainland will continue as usual during the conversion process, will all protections and benefits to policyholders under their existing insurance contracts remaining valid and in force – to be fully assumed by the newly incorporated subsidiary in due course.

China removed foreign shareholding restrictions on life insurers in January as part of its drive to open up its financial markets.

CBIRC

AIA

CBIRC Allows AIA to Incorporate as Wholly-owned Subsidiary in China

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