Samsung Life’s revenue for 2015 in China has been attracting great attention in the life insurance industry in Korea, as it increased four times from the previous year.
Its local subsidiary in China has been able to expand its operation in spectacular fashion following its partnership with the 4th largest bank in China.
Samsung Life Insurance Co. set up a joint venture with China Airlines, Samsung Bank China Life, which also signed a deal with China Bank last year to engage in the credit card business there.
The Bank of China, the only large Chinese bank that has yet to enter the life insurance business, had total assets of 2,500 trillion won with 11,000 branches in the country as of 2014, with more than 300,000 employees.
The joint venture credit card company has been able to expand its operations around China, taking advantage of its partner’s operational network. After receiving authorization from the Chinese authorities, Samsung Air China Life, a joint venture of Samsung Life Insurance in China, welcomed the Bank of China as a new shareholder, and changed the company name to Samsung Bank China Life, making a new start.
Samsung Life Insurance announced on Oct. 21 that it held an inauguration ceremony for the new joint company at the Bank of China headquarters in Beijing, China, and started the operation in earnest.
With total assets of 2.500 quadrillion won ($2.2 trillion) and net profits of 29 trillion won ($25.48 billion) as of 2014, the Bank of China is the fourth-largest bank in China in terms of total assets.
Thanks to the establishment of the new joint venture, Samsung Life Insurance is set to operate life insurance businesses all over China. The Chinese life insurance market was worth $177 billion (201.43 trillion won) of premium income last year, the fourth largest in the world.
An official from Samsung Life Insurance said, “With the joint deal with the Bank of China, the company has secured a new growth engine in China, the largest sales channel of Bancassurance. Through synergy with the Bank of China, we are planning to target the Chinese life insurance market, which is growing fast, in earnest.”
Samsung Life Insurance's joint venture in China is making a fresh start, with a new shareholder and new name, the venture, previously called Samsung Air China Life, welcomed BOC Insurance as a new shareholder, and changed its name to Samsung Bank China Life.
BOC Insurance is a wholly owned subsidiary of the Bank of China, which is among the country's four largest banks.
Samsung Life Insurance announced recently that it had held an inauguration ceremony of the new joint company at the Bank of China headquarters in Beijing and started the operation in earnest.
A Samsung Life Insurance executive said that with the new partnership, the company has secured a new growth engine in China through a large bancassurance channel across the country.
In August, Bank of China announced that BOC Insurance had acquired an equity interest of 51 percent in Samsung Air China Life Insurance for CNY1.275 billion ($201 million). Samsung Life Insurance holds a 25 percent stake while China National Aviation Holding Company owns the remaining 24 percent .
Samsung Air China Life Insurance was set up in 2005 with a registered capital of CNY800 million, becoming the first China-South Korea life insurer in the country. South Korea-based multinational insurance company Korea Samsung Life Insurance and state-owned Air China owner China National Aviation Holding founded Samsung China Air Life as a 50-50 joint venture in 2005 with 800 million yuan in registered capital.
The joint venture, which primarily sells life insurance in mainland China, was the first ever Sino-South Korean life insurance company.
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