Skandia will expand its operations into China after signing an agreement with a Chinese company to start a joint venture life assurance company in China.
Skandia signed the deal with the Beijing State-owned Asset Management Corporation Limited (BSAMC) and has already applied with the Chinese regulatory authorities to conduct the business.
The two investment groups have been working together for some time in the area of unit linked assurance through a third company called China Securities of which BSAMC is the biggest shareholder. Skandia has also had a representative office in Shanghai since 1998.
BSAMC is an investment company owned by the municipality of Beijing and has so far invested $1 billion in more than 80 large and mid sized companies.
Skandia Asia and Pacific regional chief executive Gunnar Moberg says the Chinese market will have high levels of saving and the deal with BSAMC means the new joint venture company will be able to begin writing policies within 18 months.
