The FINANCIAL -- A Memorandum of Understanding (MoU) has been signed between Lloyd’s of London and the China Taiping Insurance Group, marking a significant level of co-operation between the world’s only specialist insurance and reinsurance market and one of China’s leading insurance companies.
The agreement was signed on Wednesday 21 October by Lloyd’s Chairman John Nelson and Mr Wang Bin, Chairman of China Taiping Insurance Group (China Taiping) during his visit to Lloyd’s to coincide with President Xi Jinping’s State visit to the United Kingdom, according to Lloyd’s.
The memorandum signifies a commitment from both sides to establish a broader and closer relationship, including deepening mutual collaboration and support for Chinese enterprises internationally and comes at a time of increasing bilateral trade relations between Britain and China.
According to the MoU, Lloyd’s and China Taiping will commit to achieve complementary and collaborative development of local and global markets. For its part, Lloyd’s will help China Taiping to expand its global business network by supporting Taiping Reinsurance Company’s initiative to become a member of Lloyd’s and establish a Lloyd’s syndicate as well as Taiping Reinsurance Brokers Ltd’s initiative to become a Lloyd’s registered broker. China Taiping will support Lloyd’s in developing and expanding its business with Chinese interests. The two sides will also commit to sharing knowledge and expertise and cooperating on training and talent development.
Mr. Wang said:
“The global business characteristics are the essential part of the top priorities of China Taiping. China Taiping is a comprehensive insurance group with the longest history in overseas operations and the richest experience in internationalization among the state-owned insurance enterprises. The establishment of the cooperative relationship with Lloyd's is a significant strategy for China Taiping to elevate its internalization and build its industrial chain, strengthen its reinsurance business capability, and expand overseas business network. Through the cooperation with Lloyd's, China Taiping will further integrate its resources in both domestic and overseas markets, in both direct business and reinsurance, in both renminbi and foreign exchanges, in both P&C and life insurances. Furthermore, China Taiping will improve its ability in the implementation of Chinese enterprises going global and the Belt and Road Initiative.”
Mr. Nelson said:
“I am delighted to welcome China Taiping Insurance to Lloyd's today and pledge our commitment to building a strong and lasting business relationship in the future. For centuries Lloyd's has been the global hub for specialist insurance and reinsurance and by seeking out new business partners and further internationalising our capital base, our aim is to reinforce our global position. China is an important part of Lloyd's future strategy and this Memorandum of Understanding will enable us to deepen our understanding of the market and improve the support we are able to provide, as well as having the mutual benefit of sharing respective knowledge and expertise.”
The strategic and cooperative relationship set out in the memorandum will support the risk management of Chinese companies looking to expand internationally. It will help Chinese insurers and reinsurers to tap into global markets and give them access to expertise from different locations.