China Grants Chubb & XL Licenses

NU Online News Service, Dec. 16, 3:06 p.m. EDT

The China Insurance Regulatory Commission (CIRC) has granted licenses to Chubb Corp. and XL Group to operate businesses in the country.

Chubb said the CIRC granted final approval to Chubb Insurance (China) Co. to establish a branch in Nanjing, in Jiangsu province. The branch is expected to open Feb. 28.

The company said it opened its first branch in Shanghai in 2000 and converted it into an indirect wholly owned subsidiary in 2008.

Andre Dallaire, Chubb's greater China regional manger noted in a statement that the company is the first non-Asian, non-life insurer to be licensed in Jiangsu, a major export hub there.

XL said the CIRC granted it a license to operate a property and casualty company in Shanghai, named XL Insurance (China) Co. Business is to commence "after the completion of all regulatory registrations."

Zheqiang "Al" Xie, will be the chairman and chief executive officer of the subsidiary.

Beginning his career with the former People's Insurance Company of China in Beijing, Mr. Xie has 20 years of experience in the industry. Prior to joining XL Insurance, he held several management roles with Lloyd's in China, including setting up the Lloyd's representation in China and establishing Lloyd's full reinsurance operation, launched in Shanghai in 2007.

Mike McGavick, XL's chief executive officer, said in a statement, "The Chinese insurance market has great strategic importance to XL. Shanghai plays a key role in China's economy, with a GDP year on year growth of 8.2 percent in 2009. It delights us to bring our global experience and underwriting expertise to China's vibrant economy."