Generali China Life Insurance announced Monday the official launch of its Beijing branch, the insurer's second in China.

The new branch, according to the company's officials, is a milestone for Generali China as it marks a transformation from being a regional insurance company to a national one.

Generali China established its first office in China in Guangzhou in January in 2002. It is hoped that following the launch of its Beijing branch, Generali China will expand its operations across the country, according to company officials.

Generali China, a 50-50 joint venture between Italy-based Assicurazioni Generali and the China National Petroleum Corporation (CNPC), was the first joint venture insurance company after China's accession to the World Trade Organization (WTO).

In the first year after China joined the WTO at the end of 2001 and in line with its commitments, Guangzhou, the capital of South China's Guangdong Province, was among the first batch of Chinese cities opened up to foreign insurance companies.

The restriction for Beijing was lifted last December.

Foreign insurance companies will be allowed unfettered access to the whole China market by this December, three years after the nation joined the global trade bloc.

Generali China's two shareholders, CNPC and Assicurazioni Generali, ranked 69th and 44th among the Fortune 500 in 2003.

The alliance of the two giant companies will outfit the new insurer with strong capabilities to attract a big slice of China's thriving, competitive insurance market.

According to Gong Huazhang, the CNPC's chief accountant, investing in the insurance industry is expected to provide long-term, stable returns for CNPC, a big player in the highly risky oil industry.

"Teaming up with Assicurazioni Generali will help CNPC improve financial structure and reduce operation risks."

China's life insurance industry premiums in 2003 were 388.04 billion yuan (US$46.75 billion), an increase of 27.1 percent compared with 2002. Since reform and opening up, the growth of the insurance industry has been 34 percent annually.

Wu Dingfu, chairman of the China Insurance Regulatory Commission pointed out at the 2004 National Insurance Work Conference that the major task of China's insurance industry was to keep an eye on long-term development and to try to make it a large-scale and powerful one.

Sergio Balbinot, president of Assicurazioni Generali, expressed his confidence at the development prospects for Generali China, pledging Monday that his company will bring advanced products to China, while keeping a close eye on further market openings in China.

He said Generali China was keen on the group insurance market in China. "Once China's group insurance market is opened to foreign insurance companies, Generali China will become one of the earliest participants with the help of the accumulated experience and technology of Assicurazioni Generali."

Balbinot said the Beijing branch of Generali China had recently signed an agreement with the Industrial and Commercial Bank of China (ICBC) for comprehensive cooperation to perfect its sales network and to introduce new insurance products.

During a two-month trial operation, the premiums income of Generali China Beijing Branch surpassed 50.38 million yuan (US$6.07 million), a record.

(China Daily June 8, 2004)