Munich Re's ERGO plans life insurance JV in China

Apr. 22, 2009 (China Knowledge) - Germany-based ERGO, one of the major insurance groups in Europe, intends to establish a life insurance joint venture (JV) in China as it regards the country as one of its main priorities in its plans for global expansion, the Shanghai Daily reported on Tuesday, citing Jochen Messemer, chairman of ERGO International AG.

ERGO, a unit of Munich Re Group, has been negotiating with potential Chinese partners for the past one and a half years about the establishment of a JV, said Messemer, adding that its potential JV partner should have a well-established distribution network, a good reputation, the ability to make a long-term commitment, and a strong financial standing.

In 2007, the company established a representative office in Beijing to pave the way for its planned JV.

According to Chinese regulations, foreign insurance companies must have a representative office in China for at least two years before they will be permitted to launch an insurance company in China.