Wu Xiaohui, Chairman of Anbang Insurance Group gave an exclusive interview to the Beijing News at Anbang’s Beijing headquarters on April 26, 2016.
April 26, 2016: Late April is the time when Chinese insurers begin disclosing annual reports for the previous year. Wu Xiaohui Chairman of Anbang Insurance Group gave an exclusive interview by the Beijing News at Anbang’s Beijing headquarters.
According to the financial results announced by Anbang Life Insurance Co., Ltd., the life insurance subsidiary of the financial conglomerate Anbang Insurance Group, by the end of 2016, Anbang Life's total assets have reached 1.45 trillion RMB.
It continued to grow in market size, and posted profit of 15.11 billion RMB.
According to the statistics compiled by CIRC, China’s insurance regulatory body, Anbang Life’s steady growth in market size is accompanied by highly-acclaimed customer satisfaction rate, with only 2 complaints filed in 2016.
Foreign subsidiaries all reported profit making in 2016
In addition to the positive performance in Chinese market, Anbang Life’s overseas subsidiaries in South Korea, the Netherlands and Belgium all reported growth in size and profit in 2016.
VIVAT, a Dutch insurer acquired by Anbang Life in 2015, ended its loss making within a year and continue to grow in profit in 2016.
According to insurance observers from South Korea, Tongyang Life has realized a significant growth in business operation via product innovation and enhancement of distribution channels. Its gross premium reached 6.7 trillion won in 2016, a 57% increase compared to a year-ago, making it the fastest growing insurer in the Korean market. The 229.7 billion won in net profit also made 2016 the best performing year in the company’s history.
Overseas capital benefits Chinese SMEs
With the rapid development of overseas business operation, Anbang has created synergy between domestic and international markets.
In 2016, Tongyang Life, Anbang’s South Korean subsidiary began providing loan service to Chinese SMEs, taking full advantage of the interest difference between the two countries. In addition, Anbang’s subsidiaries in Belgium and the Netherlands purchased 200 million U.S. dollars’ worth of bonds issued by China Development Bank, resulting in capital inflow to China through Anbang’s overseas platform.
Speaking of Anbang’s achievements in globalization strategy during the China-Belgium Forum in 2016, former U.S. Treasury Secretary and former President of Harvard University Larry Summers agreed that “it has recognized that as a society, modernized insurance is absolutely fundamental to the protection and security of its citizens.”
“So Anbang is an example of a globalizing Chinese institution with enormous benefits not just for itself, but for the citizens of China, and through what its capital can accomplish, citizens around the world.” Summers said.
Wu Xiaohui, CEO of Anbang Insurance Group, recently said that Anbang’s has benefited from China’s “Belt and Road Initiative”. He expects more and more Chinese enterprises “contributing their Chinese wisdom to the countries responding to with the Initiative”.
Wu Xiaohui: Anbang’s 2.0 strategic focus is retirement service and health care
Wu Xiaohui, Chairman of Anbang Insurance Group revealed the strategic focus of Anbang in the next 30 years is retirement service and healthcare, in an interview at Anbang headquarter with The Beijing News on April 26th, 2016.
The Beijing News:
According to the 2016 annual report of Anbang Life, its overall assets have reached 1.45 trillion RMB, and from which we estimate Anbang to be the next Fortune 500 company from China. As a Chinese enterprise with international perspective, what’s Anbang’s next move?
China’s “Belt and Road Initiative” is a monumental strategy that we will proactively support and participate in. All of our overseas subsidiaries are profitable. For instance, VIVAT, our Dutch subsidiary turned losses into profit within a year after the acquisition, which reflects how Chinese wisdom improves the operation and management of a company. Without touching China’s foreign exchange reserves, Anbang’s overseas investments are all financed through international funding channels. Besides, we diverted foreign exchanges back to China as we bought the bond of China Development Bank issued abroad. We aim to build our existing insurance businesses stronger and enhance their competitiveness.
The Beijing News:
Famous economist Justin Yifu Lin told us that “Anbang’s overseas experience is a good case study for understanding how Chinese enterprises excel globally in a fiercely competitive market using Chinese wisdom in management, especially amid the economic downturn”. What is Anbang’s strategic focus in the future?
We have realized the target of “Anbang 1.0” strategy in the past decade. We have the chance to join Fortune 500 based on criteria for the last year, which will mark a fresh start for Anbang. Anbang is an international insurance company rooted in China. The focus of “Anbang 2.0” strategy is retirement service and healthcare, including community retirement service, ICU care and home-based retirement service, which will create more jobs and echo our social responsibilities.
This arcitle is an English version of the Beijing News report published on April 27th, 2017.