China allows AIA to convert Shanghai branch into subsidiary

It is now the first foreign-owned life insurance subsidiary in the mainland.

The China Banking and Insurance Regulatory Commission (CBIRC) has allowed AIA to convert its Shanghai branch into a wholly-owned subsidiary, the first in Mainland China, according to a press note.

AIA will now begin the application process for separate regulatory approvals to establish branches of the subsidiary in additional territories in Mainland China. AIA’s operations in the country will continue as usual during the conversion process.

All protections and benefits provided to policyholders under the relevant insurance contracts issued by the existing branches of AIA in Mainland China will remain valid and will be assumed fully by the newly incorporated subsidiary.

Photo courtesy of Pexels.com.