Allianz gets OK to set up insurance asset management firm

China gave the green light to Allianz to prepare for the establishment of an insurance asset management company, as the country is further opening up its financial sector to the rest of the world.

Once established in Beijing, Allianz Insurance Asset Management Co Ltd will be the first wholly foreign-owned insurance asset management company in China, and will have registered capital of 100 million yuan ($15.4 million).

Allianz (China) Insurance Holdings Co Ltd should complete preparations for the establishment of the asset management company within six months of its receipt of the approval.

Announced by the China Banking and Insurance Regulatory Commission on Wednesday, the approval has benefited from the recent measures of China to further open up and encourage foreign insurance companies to invest more in the country, said Allianz.

"In 2020, China pushed for the implementation of more measures to further open its financial sector to foreign investment and actively reviewed foreign financial institutions' applications for market access," said Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, at a news conference held by the State Council Information Office on Friday.

Since 2018, the commission has approved foreign banks and insurers to set up nearly 100 institutions of various types in China, Liang said.

The preparatory establishment of Allianz Insurance Asset Management Co, via the platform of Allianz (China) Insurance Holdings Co Ltd, is a critical strategic move for Allianz Group to enter into the Chinese asset management market, which also demonstrates the strong confidence and long-term commitment of Allianz Group to the China market, said Allianz.

The to-be-established company will locally build a professional investment management team, which adheres to Allianz Group’s long-term investment methodology to better serve its clients’ global asset management needs.