China Reinsurance Group, the country’s largest reinsurer, could be eyeing a move into the US.
The company revealed that it is carefully considering a plan to set up a business entity in the US based on global strategy and the implementation of the Sino-US phase one trade deal.
The phase one deal was signed in Juary and will see the US consider the application from Citic Group, China Re and China International Capital Corp (CICC)for the licensing of operations, as part of opening-up measures to Chinese financial institutions.
China re did not elaborate on what exactly it was considering but said the trade deal was positive for its global footprint.
China’s economy is facing huge downward pressure in the short-term due to the coronavirus pandemic, and the replacement of old macroeconomic growth drivers with the new ones will likely continue, with the supply-side structural reform of the financial sector further deepening.
China Re said this week that it expects the coronavirus pandemic to accelerate the development of the re/insurance industry by further motivating demand for health insurance and raising the importance of online technology and digital transformation.