On the 2012 Shanghai Lujiazui Forum, Chairman Li pointed out that internationalization is an important strategy for China Re’s Twelveth Five-Year plan and cross-border renminbi reinsurance business has become one pillar of this internationalization strategy.
Entering the 21st century, China has developed into the second largest trader in the world. With the development of cross-border trade settlement in renminbi, the cross-border renminbi business increased by 61% in the first quarter of 2012, with a total volume of 580 billion yuan. Renminbi has entered more than 180 countries and regions, which marks a new stage of internationalization process.
Chairman Li said that reinsurance industry, no matter in the European and American market from 17th to 19th centuries, or in the later development in the developing countries, is always connected with international trade. As the only local reinsurance company in China, China Re is always paying attention to the inter-relationship between China’s international trade and reinsurance industry. China Re actively searched for and then discovered the reinsurance business opportunity in renminbi cross-border settlement business in Hong Kong and later other countries and regions.
Up to the first quarter of 2012, China Re has signed reinsurance contracts with 16 insurance companies from areas like Hong Kong, Macao and Singapore, with a total volume of more than 10 billion yuan.
Chairman Li said that currently China Re is actively promoting internationalization strategy. Last year, China Re entered the Lloyds’ and started to make foreign currency business. Meanwhile, cross-border renminbi reinsurance business is another pillar of this internationalization strategy. In the next stage, China Re will further push its cross-border renminbi reinsurance business into a deeper development in Hong Kong, Macao and Singapore, while promoting its business in more countries in East Asia and ASEAN countries when the time is mature.
It is reported that China Re has set up its cross-border reinsurance business account in Shanghai and will start business by the end of August this year.
(From China Insurance News, July 2, 2012)