BNP Paribas and Prudential Financial have secured approval from China’s National Financial Regulatory Administration (NFRA) to set up separate insurance ventures.
The head of NFRA, Li Yunze, announced the approvals at a financial forum in Beijing, underscoring the country’s commitment to liberalising its insurance sector, reported Reuters.
Go deeper with GlobalData
The joint venture between BNP Paribas and Volkswagen Financial Services aims to capitalise on the rapid growth of China’s insurance industry, which saw total insurance assets reach $4.2trn (29.82trn yuan) at the end of 2023.
This move is part of a broader effort to attract foreign investment and expertise into China’s financial services sector.
US-based Prudential Financial has also been authorised to establish an insurance asset management operation in Beijing.
Li said: “Next, we will support Beijing’s financial opening up, as always.”
At the same forum, China’s securities regulator expressed encouragement for foreign institutions to invest and conduct business in the country.
This reflects a wider agenda to create a more inclusive and internationalised financial environment within the country.
The establishment of these new ventures by BNP Paribas and Prudential Financial is indicative of the significant opportunities that China’s insurance market holds for global players.
As the sector continues to grow, these developments are expected to pave the way for increased international participation and competition in the Chinese insurance landscape.
In August this year, BNP Paribas entered exclusive talks to acquire 100% of AXA Investment Managers, which manages nearly €850bn ($930bn) in assets.
