Saturday, November 14, 2009

Australia's AMP Signs Deal With China Life Insurance

life insurance

SYDNEY (Dow Jones)--Australian wealth manager AMP Ltd. (AMP.AU) Sunday said it has signed an asset management and pensions partnership deal with China Life Insurance Company (LFC, 2823.TW), the biggest listed life insurance company in the world.

The deal makes AMP the first foreign financial services company to agree a memorandum of understanding with China Life, and comes just a week after the Sydney based group made a joint A$12 billion bid with AXA SA (12062.FR) to buy AXA Asia Pacific Holdings Ltd. (AXA.AU).

AMP, which has operated in China since 1997, said the agreement poses "significant" opportunities, though said the quantity of the new business will depend on regulatory changes and agreement with China Life. Craig Dunn, chief executive of AMP, expects China's private pension market to grow by A$1.0 billion by the year 2030.

"We will work closely with China Life to explore opportunities where we can draw on our areas of strength for mutual benefit," Dunn said. Chinese citizens aged 60 or over is forecast to increase by more than 430 million, or 31% of the population by 2050, Dunn said. "This trend has significant implications for the aged care sector and other areas of social infrastructure, areas in which AMP also has an investment expertise," the CEO said.

At the end of June, 5%, or around A$5.0 billion of AMP Capitals funds under management were sourced from Asia. The Asia Pacific region has US$13.6 trillion funds under management in 2008, with Japan's the largest funds management business valued at US$3.6 trillion, followed by Australia's US$1.0 trillion and US$400 million in China.