AIA has received approval from the CBIRC to convert its Shanghai branch into a wholly-owned subsidiary, the company said in a statement.
The new subsidiary will be incorporated in Shanghai and is the first wholly foreign owned life insurance company approved for incorporation in mainland China.
AIA will now begin the application process for separate regulatory approvals to establish branches of the newly incorporated subsidiary in additional territories in mainland China.
Mr Lee Yuan Siong, AIA group chief executive and president, said, “AIA traces its roots to Shanghai in 1919 and it is entirely fitting to base our new subsidiary in the city where we began. Since AIA’s return to mainland China in 1992, we have focused on contributing meaningfully to the sustainable development of the life insurance industry.
“Our incorporation as a subsidiary is another significant milestone in AIA’s long history and a clear demonstration of our ongoing support for the further opening up of the financial services industry. We very much look forward to helping millions more Chinese families live Healthier, Longer, Better Lives.”
AIA said that its business operations in mainland China would continue as usual during the conversion process. All protections and benefits provided to policyholders under the relevant insurance contracts issued by the existing branches of AIA in mainland China will remain valid and will be assumed fully by the newly incorporated subsidiary.