Zurich Insurance keen to re-enter China

Zurich Insurance is seeking a joint venture partner in China, as the country’s recent easing of financial sector rules, tempts it to return to the mainland’s life insurance market which it quit five years ago.

“We have ambitions to grow in mainland China, which is a very big market with huge business opportunities,” Jack Howell, chief executive for Asia-Pacific at Zurich Insurance, told the South China Morning Post.

The insurer previously had a 20 percent stake in New China Life Insurance, which it sold in 2013. It currently operates a wholly owned general insurance company, Zurich General Insurance Company (China), which offers property, corporate and other commercial risk insurance.

In November 2017, China had announced that it would relax the 50 percent cap on foreign ownership in life insurance joint ventures so that overseas investors could own a majority 51 percent stake in three years’ time, with the cap completely removed two years later.

“We are very encouraged by the development in China. It is a great signal by the Chinese government in terms of their willingness to have foreign players take on a more active role in the market,” Howell said.

Even though the relaxation would allow foreign insurers to have a wholly owned life insurance company in China, Howell said he would still prefer to have a local partner. He did not give a timeline on when Zurich would set up such a joint venture, but said that finding the right strategic partner would be the key to go ahead with such an expansion plan.