ALLIANZ CHINA GETS 450M YUAN BOOST

The Chinese life insurance operation of Germany-based Allianz is to receive a 450 million yuan injection of cash which will increase its capital base to 1 billion yuan. The capital expansion, the fourth biggest since its foundation, will be supplied equally by Allianz China Life’s two principal shareholders – Allianz and CITIC Trust and Investment – and will leave Allianz with 51% of the newly capitalised firm. The money will be used to finance the expansion plans of Allianz China Life Insurance, formerly Allianz Dahzong. During 2007 the company expects to establish offices in up to 25 Chinese cities and a further 15 branches by the end of 2008. Under Chinese regulations, insurers are required to set aside 20 million yuan for the opening of any new branch. The cash injection comes after Allianz China Life Insurance enjoyed a positive 2006, largely thanks to its bancassurance operations. Overall, the company pulled in over 1.2 billion yuan in premiums, a year-on-year increase of 300% that was enough to put the company at number four among China’s 25 life insurance firms.