Aviva, formerly known as CGNU, said that it would form a joint venture with the China National Cereals, Oils and Foodstuffs Import and Export Corp to sell life insurance in Guangzhou. The UK's largest insurance company, which received a China insurance licence last September, plans to invest Yn250m for a 50 per cent stake in the venture, due to start operating later this year.
The company said that it was targeting Guangzhou, where life insurance premium income totalled Yn5bn last year, because there were currently only two other foreign insurance firms operating in the Guangdong capital, compared with seven in Shanghai.
Meanwhile, New York Life, America's largest mutually owned life insurance company, is planning to enter into a 50/50 joint venture with appliance giant Haier Group, South China Morning Post said. The joint venture will start operations in Shanghai with an initial investment of Yn200m.