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Having first dipped its toes into the mainland Chinese financial services market in 1997, AMP now seeks to develop a strong presence in the country and capitalise on what it says is the “rapidly growing enterprise annuity segment of China’s pension market”.
“AMP has a proud 165-year history and has contributed significantly to the development of the AU$1.85 trillion superannuation and pension market in Australia, the world’s fourth largest pension savings pool,” said AMP chief executive Craig Meller.
A statement from the company forecast that the Chinese enterprise annuities market will “overtake the equivalent size of the Australian employer-sponsored superannuation sector in 2015”, off the back of 26 per cent per annum growth over the past five years.
The deal also firms up a longstanding relationship between AMP and the pension fund’s parent company China Life Insurance Company Limited.
The two entities signed a memorandum of understanding in August 2009 and will now extend the agreement to a “business cooperation undertaking” which will see AMP provide technical support to China Life and nominate two directors to the pension company’s board.
“Having had a successful venture in funds management from last year, we look forward to sharing our expertise in corporate superannuation and investment management to help grow China Life Pension Company’s business in a market where we see significant growth potential,” Mr Meller said.
China Life Insurance Group chairman Yang Ming Sheng described the deal as an “important milestone event” and a “significant moment in the history” of the company, which began as Tai Ping Insurance Company in Shanghai in 1929.