"Beijing is the seventh metropolitan city we have become active in, with exciting potential and competition. It is also a hub and foundation for our geographic expansion to the northern part of the country," said Christian Molt, CEO of Allianz China Life (AZCL).
Allianz China Life to enter China's north
So far, AZCL has established a business network in over 20 cities throughout China, with a sales team of over 10,000 agents and some 2,000 bank outlets selling its products in the six provinces where the company is active. In 2007, AZCL earned a premium income of over three billion renminbi (approx. 293 million euros), ranking among the top five foreign insurers in the country.
Bruce Bowers, CEO of Allianz Asia Pacific, expressed Allianz’s long-term commitment to China: "China is one of the most important strategic markets in the world. In Asia Pacific, we want to expand consistently and continuously in all of our chosen markets. Allianz China Life’s sustainable growth reflects our strategy in the region."
Customers' first choice
Beijing is not an entirely new market for Allianz: Allianz Group set up a representative office in the city in 1994. Its joint-venture partner CITIC Trust and its strategic partner Industrial and Commercial Bank of China (ICBC) are also based in Beijing.
With 16 million residents, Beijing had a GDP per capita of roughly 56,044 renminbi in 2007 (5474 euros). "Our goal is to become the customers' first choice among foreign insurers," said Peijun Cheng, general manager of AZCL's Beijing Branch. "Tailor-made financial planning, innovative products, high-quality service and professional training systems for employees are core strengths of the company," he added.
Path of growth
In the first quarter of 2008, AZCL achieved over than 800 million renminbi (78 million euros) in total, which represents a growth rate of over 60 percent compared to last year. The company's multi-distribution strategy has been a key success factor. In addition to a successful bancassurance channel, the company's agent team is the third largest team among international insurers in China. Revenues contributed by the agent channel increased by 90 percent on a year-on-year basis.
AZCL also continued its national expansion with an enhanced sales network during the first quarter of 2008. By the end of March, the company set up 48 sales service centers in more than 20 cities nationwide. In Zhejiang, Sichuan, Shenzhen and Ningbo, Allianz China Life ranks second among the international life insurers.
Su Jiqing, vice general manager of CITIC Trust & Investment Company, expressed continued confidence in the joint venture company: "Allianz China Life blends both Allianz's global risk management know-how and CITIC's local financial service technique."
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