Lloyd’s signed a memorandum of understanding with China Taiping Insurance Group intended to boost cooperation between “the world’s only specialist insurance and reinsurance market and one of China’s leading insurance companies.”
Lloyd’s Chairman John Nelson and Wang Bin, Chairman of China Taiping, inked their deal on Oct. 21, during Wang’s visit to Lloyd’s, an agreement designed to coincide with President Xi Jinping’s State visit to the United Kingdom.
“The memorandum signifies a commitment from both sides to establish a broader and closer relationship, including deepening mutual collaboration and support for Chinese enterprises internationally and comes at a time of increasing bilateral trade relations between Britain and China,” Lloyd’s explained in an announcement about the agreement.
Lloyd’s said it and China Taiping will “commit to achieve complementary and collaborative development of local and global markets.” Specifically, Lloyd’s will help back Taiping Reinsurance Company’s initiative to become a member of Lloyd’s and establish a Lloyd’s syndicate, as well as Taiping Reinsurance Brokers Ltd’s initiative to become a Lloyd’s registered broker. The goal here is to assist in China Taiping’s goal of expanding its global network.
In turn, China Taiping will help Lloyd’s develop and grow its business with Chinese interests. The two sides will also share knowledge and expertise and cooperate on training and talent development.
Wang stressed in prepared remarks that the “global business characteristics are the essential part of the top priorities of China Taiping.” He described the company as a “comprehensive insurance group with the longest history in overseas operations and the richest experience in internationalization among the state-owned insurance enterprises.”
The announcement notes that the cooperative relationship with Lloyd’s reflects a major effort by China Taiping to elevate its internalization and build its industrial chain, strengthen its reinsurance business capability, and expand overseas business network.
“Through the cooperation with Lloyd’s, China Taiping will further integrate its resources in both domestic and overseas markets, in both direct business and reinsurance, in both renminbi and foreign exchanges, in both P&C and life insurances,” the announcement noted.
Nelson described the agreement as a way to build a future relationship and also make inroads into the crucial China market.
“China is an important part of Lloyd’s future strategy and this memorandum of understanding will enable us to deepen our understanding of the market and improve the support we are able to provide, as well as having the mutual benefit of sharing respective knowledge and expertise,” Nelson said in prepared remarks.
Lloyd’s said the cooperative arrangement will help support risk management of Chinese companies pursuing international expansion, and also help Chinese insurers/reinsurers to tap into global markets with access to expertise from different locations.
Source: Lloyd’s of London