Henning Schulte-Noelle, chairman of the world's largest premium earner, said negotiations were under way with Guotai Jun'an Securities Company about setting up a joint venture.

He said that Guotai Jun'an has rich local market resources and is close to its customers. Combined with Allianz's international experience, this can bring promising prospects, he said.

By the end of last year, Allianz had over 1.17 trillion euros (US$1.08 trillion) in assets under its management internationally, making it one of the world's top five asset-management companies.

Schulte-Noelle said the company, while exploring new business opportunities, would stick to its long-term investment strategy for China's insurance market as the country's accession to the World Trade Organization will surely result in greater room for foreign companies to expand.

Since foreign insurance companies entered the Chinese mainland in 1992, 34 companies have got a business licence. Together, they collected 3.2 billion yuan (US$385.5 million) in premium income last year.

China's membership of the WTO will allow foreign companies to sell more products to more customers in more cities within the next few years.

"Although it will not happen tomorrow, we will continue to prepare ourselves," Schulte-Noelle said.

He said his company is preparing to launch a branch in Guangzhou later this year to sell non-life-insurance products.

(People's Daily June 06, 2002)