Metlife Inc has gained regulatory approval to merge its two life-insurance joint ventures in China to consolidate its business in the rapidly growing market.
The largest life insurer in the United States has two equally-owned joint ventures in China - United MetLife Insurance Co in Shanghai and Sino-US MetLife Insurance Co in Beijing.
The Shanghai venture's domestic partner - Shanghai Alliance Investment Ltd - has bought the stake held by Capital Airports Holding Co in Sino-US MetLife, paving the way for the merger.
United MetLife will acquire the assets, liabilities and operations of Sino-US MetLife and assume all rights and obligations toward policyholders of Sino-US MetLife. The new entity will be named Sino-US United MetLife Insurance Co.
"We have full confidence in the future of the Chinese market, and we will continue to support our joint venture," said Peter Smyth, managing director of MetLife Asia-Pacific.
MetLife's two ventures generated a combined premium income of 4.2 billion yuan (US$636 million) last year in China.
