Germany’s Hannover Re announced that it has received a license from the China Insurance Regulatory Commission (CIRC) to transact life and health reinsurance in the People’s Republic of China.
“We are delighted by the CIRC’s decision”, stated Dr. Wolf S. Becke, the Member of the Executive Board responsible for life and health reinsurance. “The license will enable us to optimally position ourselves in the vigorously expanding Chinese life and health reinsurance market and intensify the existing support that we have been providing for our clients through a representative office since 1997. We now have the ability to offer our cedants tailored reinsurance solutions in the life, health and personal accident lines and to share in the extraordinary growth potential of this market.”
Hannover Re noted: “With gross premium volume of USD 61 billion in 2005 (thereof USD 45 billion in life and USD 16 billion in non-life business) and strong growth rates, the Chinese insurance market is one of the most attractive in the world. Having ranked eleventh among major global insurance markets last year, forecasts suggest China could move up to as high as third by 2020. In addition to the rapidly rising level of insurance awareness and a marked propensity to save among the Chinese population coupled with a middle class that has ample purchasing power, China offers unparalleled growth prospects thanks to the demographic trend.”
The Company also indicated that with the “establishment of a Shanghai branch now promises to enhance still further the positioning of this business group and will secure a highly promising portfolio as well as vigorous organic growth for Hannover Re.”
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