HSBC in mainland China insurance joint venture

This is the first foreign joint venture in China to obtain an insurance broking licence allowing the company to offer services to domestic customers.

HSBC, with its joint venture partners, will form Beijing HSBC Insurance Brokers Limited and take a 24.9 per cent stake in the new company. Shanghai Hua Yu Asset Management Limited and Beijing Zhong Ke Engineering Company will take a 50.1 per cent and 25 per cent stake in the company respectively. Beijing HSBC Insurance Brokers will be capitalised at RMB16 million (about US$1.9 million), of which HSBC will inject US$498,000.

The new business is licensed to undertake insurance broking, claims handling, reinsurance and risk management and risk consulting services. Based in Beijing, the company plans to focus on brokering large commercial risks, reinsurance business, international marine, aviation, transport and health care insurance to foreign investment entities, such as multinationals investing and operating in China. The company will also be able to offer services to domestic Chinese companies investing or exporting outside of mainland China.

Robin Harman, Managing Director, HSBC Insurance Brokers Limited based in Dubai, said: "As a joint venture partner in a nationally licensed insurance broker in mainland China, we will be able to apply our considerable managerial and technical expertise to offer customers a professional, competitive service in an exciting, substantial and growing market."

"Here in the Middle East we are considered one of the leading insurance brokers. Through our office in Dubai, HSBC Insurance Brokers provides a full insurance broking, consultancy and risk management service including corporate, commercial, marine, construction, aviation and personal insurance. Actuarial consultancy services are also offered on employee benefits," he added.

HSBC Insurance Brokers Limited ranks among the 10 largest international Lloyd's insurance broking groups and among the 15 largest brokers in the world.