China’s National Financial Regulatory Administration (NFRA) has granted approval for AIA and Aegon to establish wholly foreign-owned insurance asset management companies in Shanghai.
The move makes AIA and Aegon the third and fourth international insurers to secure such licenses in China, following Allianz and Prudential.
It also marks the first time that foreign-owned life insurance asset management firms will be based in Shanghai. Previously, both Allianz and Prudential set up their wholly foreign-owned asset management operations in Beijing.
AIA Insurance Asset Management plans to offer a product suite tailored to the Chinese market, spanning multiple industries and asset classes. “This will empower AIA Life Insurance to achieve asset-liability matching and secure long-term stable returns for insurance funds,” AIA said in a press release.
AIA Life Insurance, which became a wholly owned subsidiary of AIA Group in July 2020 after transitioning from its former Shanghai branch, offers life, health, and accident insurance in the country. The company reported earned premiums of RMB 69.3 billion (approximately USD 9.7 billion) for 2024.
Aegon, meanwhile, holds a 50% stake in Aegon THTF Life Insurance, a joint venture with Tsinghua Tongfang established in 2003, and also owns 49% of Aegon Industrial Fund. The new Shanghai-based asset management company will expand Aegon’s presence in China’s insurance and asset management sectors.
The approvals come as foreign insurers continue to expand their footprint in China. In 2024, Generali acquired a 51% stake in China-Italy Insurance, making it a wholly foreign-owned property insurer. Allianz also increased its presence by taking a 2% stake in Guomin Pension & Insurance Company, becoming a strategic investor.
AIA and Aegon will be the first two life insurance asset management firms established in Shanghai. Previously, Allianz, which became the first global life insurance company to set up a wholly foreign-owned asset management firm in China in 2021, chose Beijing as its base. Prudential Insurance Asset Management, established in February of this year, is also based in Beijing.
