The insurance joint venture established by New York Life and Haier, China's leading domestic appliance manufacturer, sold its first policy in December. The two partners own equal shares of the venture, Haier New York Life, in which they have invested a combined US$24m. New York Life is providing financial and insurance expertise to the venture, while Haier is contributing its brand name, distribution network and local knowledge. The venture will focus on selling whole life and term life policies.
Analysts said this was part of Haier's long-term strategy of moving into the financial services industry. In little more than a year, it has become the leading shareholder in Changjiang Securities Co, bought 20 per cent of Anshan Trust & Investment Co and expanded its stake in Qingdao Commercial Bank to 60 per cent.