The success on the Prudential bid for AIA relies on more than finance.
AIG founded in Shanghai in 1919, is the only foreign insurance firm to have the privilege to operate independently, with not local joint-venture. Prudential on the other hand, in January 2005 acquired a 50:50 joint-venture with China CITIC.
With talks with China Regulatory Commission (CIRC), Thiam said he intends to keep its stakes in the joint-venture with China’s CITIC group. However, as both Prudential and
AIA have separated JVs in India, the regulators made it clear that the company cannot have two licences.
The intention of Thiam to keep its stake with CITIC is well approved by China. This single, yet, important decision shows the understanding of Prudential towards China main goal: China’s local growth.
The successful story of L’Oréal is one of a few examples. L’Oréal professionally cherished and excelled at respecting China’s will: After moving to China, the French cosmetic company waited nine years before making local profit. Now it is one of the most successful brands in its type in China.
As numbers show, the Asian insurance market is about double digits growth through development and education. To maximise one future profit, it is vital for Prudential to work hand in hand with China’s government.
AIG founded in Shanghai in 1919, is the only foreign insurance firm to have the privilege to operate independently, with not local joint-venture. Prudential on the other hand, in January 2005 acquired a 50:50 joint-venture with China CITIC.
With talks with China Regulatory Commission (CIRC), Thiam said he intends to keep its stakes in the joint-venture with China’s CITIC group. However, as both Prudential and
AIA have separated JVs in India, the regulators made it clear that the company cannot have two licences.The intention of Thiam to keep its stake with CITIC is well approved by China. This single, yet, important decision shows the understanding of Prudential towards China main goal: China’s local growth.
The successful story of L’Oréal is one of a few examples. L’Oréal professionally cherished and excelled at respecting China’s will: After moving to China, the French cosmetic company waited nine years before making local profit. Now it is one of the most successful brands in its type in China.
As numbers show, the Asian insurance market is about double digits growth through development and education. To maximise one future profit, it is vital for Prudential to work hand in hand with China’s government.
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