Dai-ichi Life Japan receives licence to open business in China

In China, with the world’s highest population of over 1.3 billion, the life insurance market has been expanding along with its steady economic growth and improvement in the quality of life, and high growth is expected to continue in the future.

DLI and Huadian have been working together to start a joint life insurance business, focusing on the potential of the life insurance market in China.

Consequently, both companies have reached a basic agreement on establishing a joint venture life insurance company, and successfully acquired a permit to prepare to commence a new company from the China Insurance Regulatory Commission eventually. In establishing a joint venture life insurance company, both companies aim to cooperate with each other under an equal partnership.

Koichiro Watanabe, president of DLI said: “The joint-venture life insurance company will be a perfect blending of DLI’s knowledge and expertise in the life insurance business as represented by its “New Total Life Plan” strategies and Huadian’s abundant business resources and well-established corporate brand as a leading electric power company group in China.

Maximising the merit of the joint venture between the two leading players in Japan and China, we will strive to operate an outstanding joint venture life insurance company. After signing the joint venture contract, we will start pre-operation targeting the earlier commencement of business.”

This entry to the Chinese market follows DLI’s overseas business development initiatives in Vietnam, India, Thailand and Australia. DLI will continuously seek to strengthen the operations of our existing overseas businesses in each country and take initiatives in other potential overseas markets.

Established in 1902, DLI is one of the leading life insurance companies in Japan as well as in the world with the total asset of $388.4 billion, premium Income of $39.8 billion (updated as at March 31, 2011).

Huadian is a one of five largest state-owned electric power company groups in China. Based in Beijing, it owns 412 companies including five listed companies and administrated by the State-owned Assets Supervision and Administration Commission, which reports directly to the State Council.

The firm has been promoting diversification of its business under its growth strategy. As part of the initiative, it has been strengthening its financial business. Currently it owns companies operating in asset management and insurance broker businesses and also has stake in companies operating in non-life, banking and securities businesses.