Opening & Unveiling Ceremony of Jiangsu Branch of BOC Insurance

After three months of preparation, Bank of China Insurance Co., Ltd. (hereinafter referred to as BOC Insurance), a wholly-funded subsidiary of Bank of China, finally took its first step of operation in Mainland China. On January 18 2006, Jiangsu Branch of BOC Insurance held its opening ceremony in Nanjing.

It was the first branch of BOC Insurance in mainland and the first foreign-funded insurance company in Jiangsu as well. Relevant leaders from Jiangsu Government, Nanjing Municipal Party Committee, Nanjing City Government, China Insurance Regulatory Commission Jiangsu Bureau and Bank of China (BOC) participated in the opening ceremony.

The insurance premium income in Jiangsu Province in 2004 reached RMB417.32 million, ranked the first domestically for the third consecutive year. The potential of economic development and level of insurance development in Jiangsu attracted many foreign-funded insurance companies to prepare for new branch agencies.

Facing fierce competition, but considering the sound insurance ecological environment, the responsible personnel said, BOC Insurance finally decided to enter Jingsu Market. This corresponded to the operational philosophy of honesty and standard which BOC Insurance consistently abided by, and was also beneficial to the practices of service model of bank insurance.

BOC Insurance will not only provide quality, convenient and professional services to Jiangsu customers on properties insurance business but also expect to give full play of integral advantage of BOC Insurance on this basis, and provide comprehensive financial services to customers in association with Jiangsu Branch of BOC.

BOC Insurance, founded in January 2005, was the first domestic company that had obtained approval to reconstruct into foreign-owned property insurance enterprise, and the first insurance company to put forward the operational model of Bank Insurance . Following the operational philosophy of compliance and honesty, BOC Insurance makes great efforts in the building of complete corporate governance, innovation of operational model, employment of clear and definite developing strategy, and establishment and improvement of scientific policy system, internal control mechanism and risk management system.

BOC Insurance further integrates the business and management flow, establishes market-orientated and standardized human resources management system and effective incentive and disciplinary mechanism, and builds up prudent accounting, financial system and system of transparent information disclosure.

BOC Insurance provides professional risk management solutions related to property and interests for individuals, families and organizations via extensive network and advanced technology measures, and offers the most appropriate insurance products with quality and fast services. Through these efforts, BOC Insurance strives to be the best insurance group in China with the insurance brand representing the most advanced technology and best services.

China Jiangsu Machinery & Equipment I/E Group CO. addressed as representative of customers and thought highly of the operational philosophy of integrity and standard of BOC Insurance, the brand-new service model which integrated bank and insurance, and personalized insurance services. The company expressed its will for further cooperation as well.

On this opening ceremony, representatives from 18 famous enterprises were present for congratulation. It was learned that these enterprises were all quality customers of Jiangsu Branch of BOC. This confirmed the remarks of Duan Qiuping, General Manager of BOC Insurance, saying, We have transferred from providing insurance services to shareholders in the first phase to providing the services to group customers in the second phrase.

We have our own brand, network, customer resources, financial strengths, thus we can completely exert the advantages of the entire group and develop the insurance business . His remarks to a certain extent illustrated the development strategy of BOC Insurance in the future. Based on its close relationship with BOC, BOC Insurance would innovate the bank insurance model, integrate the internal resources of the group, transform resources advantages of the Bank into those of insurance business, and integrate bank service and insurance service.

With this strategy, BOC Insurance could provide professional insurance services to the customers and help the customer add his value.

After the ceremony, BOC Insurance signed the business cooperative agreement with Jiangsu Branch of BOC on the spot. Recently, the activity of collect annual fee and give insurance free of charge launched by Jiangsu Branch of BOC together with BOC Insurance also attracted universal attention of all parties in the market. Besides, China Jiangsu Machinery & Equipment I/E Group CO., Nanjing Textiles Import & Export Co., Ltd., and Gold East Paper (Jiangsu) Co., Ltd. signed Memorandum of Understanding on Cooperation with BOC Insurance, too.

As for BOC Insurance s entering into Jiangsu market, officials of Jiangsu government and the Insurance Regulatory Bureau extended their welcome. Both parties thought that BOC Insurance entering Jiangsu market had great significance in optimizing the structure of local insurance market, enhancing the competitiveness of local insurance market, and supporting local economic development. The officials of Jiangsu government also stated that BOC Insurance s entering Jiangsu would bring demonstration effects, and more and more insurance companies were expected to enter Jiangsu for business.