Samsung Life's China venture seeks expansion

HONG KONG, July 28 (Yonhap) -- Samsung Life Insurance Co.'s joint venture in China said Thursday it will expand its reach in the country in an effort to increase its presence in the growing insurance market.
Samsung Life Insurance and China National Aviation Holding Co., the major stakeholder of Air China Ltd., established Samsung Air China Life Insurance Co. in 2005, setting the stage for the advance of South Korea's top life insurer into the world's most populous country.
Samsung Air China Life Insurance, the 50-50 joint venture, said it will increase the number of branches in the country within five years, accelerating its push to become a national life insurance company.
"In order to compete in the insurance market in Beijing, an important strategic position is to establish a national sales network," company CEO Lee Chang-hun said.
The company, however, did not reveal the number of new branches to be set up.
The company has set up branches in Tianjin, Qingdao and Beijing over the last six years, and has submitted an application for government approval on setting up a branch in Sichuan.
Many foreign insurance companies have been seeking to tap into the Chinese market since December 2004 when Beijing opened its insurance sector to foreign competition.
However, foreign insurance companies' market share has always stayed below 5 percent in China. In the first five months this year, foreign insurance companies garnered a combined premium income of 22 billion yuan, accounting for 3 percent of the 673.7 billion yuan total.
China has become one of the world's fastest growing insurance markets, with 146 companies operating in the industry.