RSA Group expects its premiums to grow by about 30 percent in China next year, the company said yesterday.
The United Kingdom-based insurer posted a growth of 34 percent in the first 11 months this year to 238 million yuan (US$35 million) in China, Mike Jakeman, chief executive officer of RSA China said.
The company is strong in construction and engineering insurance, which accounted for 40 percent of its total premiums in the country. Premiums from the sector skyrocketed 93 percent in the same period. The London-listed insurer expects to maintain its growth next year and is considering opening more branches in major Chinese cities, said Jakeman.
The company is awaiting approval from the China Insurance Regulatory Commission to open a branch in Beijing, where it has a representative office.
The company is expecting to take advantage of opportunities offered by the central government's 4-trillion-yuan stimulus package, especially in infrastructure and renewable energy sectors.
The insurer has launched two products in China this year in the aquaculture and wind power sectors and RSA is poised to bring in more products, such as in solar energy, as China increases its efforts to seek more renewable energy sources and projects.
Last year, the company got the go-ahead from the commission to convert its Shanghai branch to a wholly owned subsidiary - Sun Alliance Insurance (China) Ltd - which was launched in March this year with a registered capital of 500 million yuan.
Its shares have risen 7 percent since May while the FTSE100 has lost about 34 percent. Emerging markets accounted for 10 percent of its premiums while the UK contributed 41 percent.
(Shanghai Daily December 17, 2008)
