MetLife plans multiple listing
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The US-based life insurer MetLife Inc is considering a multiple listing to fuel its expansion globally after acquiring American International Group Inc's international life insurance unit American Life Insurance Co (Alico), the company's president of international business said on Tuesday.
"We are thinking about a listing in London, Shanghai, Hong Kong or Tokyo, besides our listing in New York Stock Exchange in 2000," William J. Toppeta, president of the international department of MetLife, told China Daily in an exclusive interview.
According to Toppeta, the multiple listing plan is aimed to better meet investors' interests and boost the insurer's global business expansion.
MetLife clinched a $15.5 billion purchase for Alico in March 2010. The deal, which gave MetLife a presence in 47 nations, also brought in 60 new investors from Europe.
"Shanghai will be an important choice for our multiple listing plan after we merge our two joint-venture insurance units in China," Toppeta said.
In March, the China Insurance Regulatory Commission (CIRC) approved the company's plan to merge Shanghai-based United MetLife Insurance Co and Beijing-headquartered Sino-US MetLife Insurance Co into Sino-US United MetLife Insurance Co - a 50-50 joint venture between MetLife Inc and Shanghai Alliance Investment Ltd. It is in line with the regulator's push for foreign investors to focus on one joint venture in China.
"The merger, which reflects our commitment to the Chinese market, will also fit our global strategy of 'one MetLife' - one image, one team and one strategy," Toppeta said.
Maintaining focus on the core life insurance business is a key part of the company's strategy, he said.
"We will probably not expand to other lines of business in China," Toppeta said. "Though we've been watching out for any merger and acquisition opportunities globally, such chances might be few in China given the early development stage of the insurance industry here."
CIRC statistics show that the country's income from premiums accounted for just 3.4 percent of gross domestic product in 2009, far less than the global average of 7 percent. China's per capita premium was $121, compared with the global average of $595.
"We will strive to be among the top three foreign life insurers by 2015 in terms of new premiums," said Bob Pei, CEO of Sino-US United MetLife Insurance Co Ltd.
To achieve this ambitious goal, Pei said that the company will further invest in consolidating major sales channels and hire more employees to fuel its rapid expansion.
"We just received licenses to start business operations in Hubei and Sichuan provinces, and we plan to enter Fujian province this year," said Pei.
By the end of last year, the company had 28 outlets in the country, with income from premiums reaching 4.2 billion yuan ($642 million), ranking seventh among foreign life insurers. The company currently has 5,100 employees in China.
