The new insurance company is a 50-50 joint venture founded by Italy-based Assicurazioni Generali SpA and China National Petroleum Corp (CNPC). Its registered capital is 200 million yuan (US$24 million).

Assicurazioni Generali SpA, established in 1831, is one of the world's leading insurers. Generali has set up 176 insurance and financial entities in approximately 50 countries and regions worldwide.

CNPC is one of China's biggest and most influential State-owned enterprises, focusing on the production and trade of petroleum and natural gas.

"Insurance is an industry with an extremely huge potential in China," noted Lin Jingao, chairman of the insurance company. "The win-win partnership will make good use of the advantage of both CNPC and Generali, and will favourably position the joint venture in the competitive but lucrative life insurance market in China."

CNPC's advantages include its financial strength, its good understanding of the domestic market and its local management experience, while Generali's advantages include its financial power and its expertise in the insurance industry.

"This partnership underlines Generali's confidence in and long-term commitment to the success of the joint venture, which will have the opportunity of constantly sharing its international focus," remarked Sergio Balbinot, general manager of Generali Group, at the opening ceremony.

(China Daily February 28, 2002)