AEGON-CNOOC Life Insurance Co Ltd said yesterday its shareholders have agreed to substantially increase its capital base this month to facilitate anticipated rapid growth.

The injection of funds, which is expected to be completed by the end of this year to bring total capital to 500 million yuan (US$60 million) from 300 million yuan (US$36 million) previously, followed a 100 million yuan (US$12 million) recapitalization by shareholders last year.

"Hopefully by the end of September, the shareholders will have agreed to possibly increase the capital to 600 million yuan (US$72 million)," said Lin Shaodong, chairman of the company.

"This is intended to meet the needs of the healthy and rapid growth that AEGON-CNOOC is enjoying," he said.

The company is a 50-50 joint venture between Netherlands-based AEGON Insurance Group and China National Offshore Oil Corporation.

AEGON-CNOOC opened its first branch in Beijing yesterday, three years after its establishment in Shanghai.

"We are delighted with the success of AEGON-CNOOC's operations in Shanghai over the past three years," said Donald Shepard, chief executive officer of AEGON. "We are confident that the successful foundation we have established will enable AEGON-CNOOC to succeed in Beijing and rapidly develop across China in the coming years."

The joint venture has built a multi-channel distribution network which includes agency, bancassurance, direct marketing and brokerage in Shanghai, which company officials said will be duplicated in the Beijing market.

The company will be selling participating, non-participating and investment life insurance products, including protection insurance, endowment insurance, annuity and universal life insurance, as well as accident and health insurance.

In addition to life insurance, Shepard said AEGON is watching closely rapid developments particularly in the corporate annuity business, which was opened to foreign insurers towards the end of last year.

"We are already exploring the feasibility of setting up asset management operations with strong local partners," he said.

"We believe our strong expertise in these areas can also bring some real benefits to the market and to our customers in the future," he added.

Source: China Daily