Expanding into Northwest China to serve rising demand for protection and savings products
HONG KONG, CHINA - Media OutReach - 14 January 2019 - CITIC-Prudential Life Insurance Company Limited ("CITIC-Prudential") has received approval from the China Banking and Insurance Regulatory Commission ("CBIRC") to begin preparatory work for the establishment of a new branch in Shaanxi province -- the company's 20th branch in China. The expansion is part of CITIC-Prudential's commitment to extend its footprint in China and serve the protection and savings needs of millions of consumers in one of the country's most prominent regions.
Nic Nicandrou, Chief Executive of Prudential Corporation Asia and Chairman of CITIC-Prudential, said: "China is central to Prudential's growth strategy and represents our third-largest growth market in Asia. The rising middle class, ageing population and soaring household wealth present tremendous opportunities for us to support the health and protection needs of the population in China where many families are still un-insured or under-insured." In the first nine months of 2018, health and protection solutions accounted for around 42% of the company's sales mix in China and grew 15% over this period.
"Since entering China in 2000, CITIC-Prudential has seen strong annual double-digit, high quality growth," Nicandrou continued. "The addition of the Shaanxi branch is a milestone because it allows us to better serve customers in Northwest China. With our vast and growing network, we are well-placed to meet the evolving needs of Chinese consumers, leveraging not just our geographic reach but also innovation and digital technology with a human touch."
The province of Shaanxi is home to the ancient capital of Xi'an. Once an entry point to the Silk Road, the city has seen rapid social and economic development in recent years. With a population of 38 million, Shaanxi registered GDP of RMB2.2 trillion in 2017, an increase of 8% from the previous year. The insurance industry also enjoyed steady growth, recording RMB70 billion in total life insurance premiums as of November 2018, a 12% increase from 2017, placing it 14th among all provinces.
Since establishing the first Sino-British insurance joint venture in China in 2000, CITIC-Prudential has built a comprehensive network of 224 sales offices in 87 cities in China with access to 78% of the country's gross domestic product (GDP). The company has 19 branches, close to 40 bank partners and an agency force of 48,0003 across the country.
Last November, Prudential plc's Asian asset management business, Eastspring Investments (Eastspring), announced the official opening of a full-service investment and distribution office in Shanghai, with the aim of serving the investment needs of high net worth individuals and institutional investors in China. The new office complements Eastspring's existing joint-venture partnership with CITIC Group, CITIC-Prudential Fund Management Company, which focuses on the retail market and was established in 2005.
Prudential's growing footprint in China is well positioned to meet the fast growing and evolving health, protection and savings needs of consumers.
ABOUT PRUDENTIAL CORPORATION ASIA ("PCA")
PCA is a business unit of Prudential plc* (United Kingdom), comprising its life insurance operations in Asia and its asset management business, Eastspring Investments. It is headquartered in Hong Kong.
PCA is a leading life insurer that spans 12 markets in Asia, covering Cambodia, China, Hong Kong, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Prudential has a robust multi-channel distribution platform providing a comprehensive range of protection, savings and investment products to meet the diverse needs of Asian people.
Eastspring Investments manages assets on behalf of retail and institutional investors. It is one of the region's largest asset managers, with a presence in 10 major Asian markets as well as distribution offices in the US and Europe. It has £138 billion in assets under management (as at 30 June 2018) and provides investment solutions across a broad range of asset classes.
*Prudential plc is incorporated in England and Wales, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 170 years and has £664 billion in assets under management (as at 30 June 2018). Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.
Prudential plc is listed on the stock exchanges of London (PRU.L), Hong Kong (2378.HK), Singapore (K6S.SG) and New York (PUK.N).
Established in 2000, CITIC-Prudential is the first Sino-British insurance joint venture in China and has maintained a leading position among foreign joint venture companies in the country. With the strong support of its joint venture partners, Prudential and CITIC, CITIC-Prudential has grown rapidly over the years and currently has branches in Guangdong, Beijing, Jiangsu, Shanghai, Hubei, Shandong, Zhejiang, Tianjin, Guangxi, Shenzhen, Fujian, Hebei, Liaoning, Shanxi, Henan, Anhui, Sichuan, Suzhou and Hunan. While the company has identified the Pearl River Delta, Yangtze River Delta and the Bohai Economic Region as its pivotal development areas, it plans to continue its expansion into central and western China to achieve country-wide coverage. CITIC-Prudential has 48,000 agents, 5,300 employees and over 1.3 million policyholders (as at 31 December 2018). The company has won numerous awards and recognitions over the years, including the '2018 Top 10 Chinese Life Insurers' from the '2018 Asia Insurance Competitiveness Research Report' commissioned by 21st Century Business Herald. CITIC-Prudential was also ranked number one in the Solvency Aligned Risk Management Requirements and Assessment (SARMRA) for 2017, conducted by the China Insurance Regulatory Commission (CIRC).