Allianz gets greenlight to enter Chinese insurance asset management market

German insurer Allianz Group has obtained regulatory approval to set up China's first wholly foreign-owned insurance asset management company.

The China Banking and Insurance Regulatory Commission (CBIRC) has approved Allianz Insurance Asset Management Co (Allianz IAMC) for preparatory establishment after the signing of China-EU Investment Agreement on December 30, 2020.

The greenlight comes as China has opened up its financial sector including insurance in an effort to attract foreign investment within the country.

The German insurer said the establishment of Allianz IAMC is a "critical strategic move" for Allianz Group to enter into the Chinese asset management.

Allianz China Insurance Holding (AZCH) will now begin the preparation works of the IAMC preparatory establishment in accordance with Chinese laws and regulations.

IAMC will be established in Beijing and will "locally build a professional investment management team which adheres to the group’s long-term investment methodology," Allianz said in a statement.

AZCH is the first wholly foreign-owned insurance holding company in China invested by Allianz Group. It received approval from CBIRC last December to inject another RMB 1.2 billion capital, and Allianz Group is still the sole shareholder after the capital injection.

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