13 Oct 2000

Prudential plc and Citic launch first Sino-British life insurance operation in China

Prudential plc today announced the launch of its joint venture with China International Trust & Investment Corporation (CITIC) in Guangzhou, China. The joint venture Company, CITIC Prudential Life Insurance Co, will have an initial capital investment of RMB200 million (approx. £16 million) and is the first Sino-British life insurance operation in China. Mark Tucker, chief executive of Prudential Corporation Asia said:

"Our partnership with CITIC provides a strong foundation on which to build a substantial life insurance business in Guangzhou and China as a whole. This new joint venture will combine Prudential's life insurance experience with CITIC’s local market knowledge and distribution strengths. This partnership underscores Prudential's confidence and long term commitment to Asia.”

Mr. Wang Jun, chairman of CITIC commented:
“I am very pleased to join with a partner as strong and experienced as Prudential. I believe with the combined strengths of both parties, CITIC Prudential will bring positive competition into China’s life insurance industry and ultimately Chinese consumers will benefit.” The Right Honourable John Prescott MP, (Deputy Prime Minister of the United Kingdom), Mr. Wang Qishan (Vice Governor of Guangdong Province), Sir Anthony Galsworthy, (UK’s Ambassador to China), and Mr. Lin Shusen, (Mayor of Guangzhou City), also attended the launch ceremony.

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Notes to Editors:

Established in London in 1848, Prudential plc is a leading international financial services group with a market capitalisation of approximately £18 billion and funds under management of £164 billion at 30 June 2000. In the UK, Prudential is one of the largest life insurance companies and pension annuity providers. In the US, Prudential owns Jackson National Life, the twentieth largest US life insurance company. In Europe, Prudential has entered into strategic distribution arrangements with CNP Assurances in France and Signal Iduna in Germany.

Prudential first established its Asian presence in 1923 and is the UK’s largest life insurance company in Asia with offices in eleven countries and a network of almost 25,000 agents and staff. In addition to Guangzhou, Prudential has representative offices in four other cities in Mainland China: Beijing; Shanghai; Tianjin; and Shenyang.

Established in 1979, CITIC (China International Trust & Investment Corporation) is a state?owned enterprise formed under the direct leadership of the State Council of the People's Republic of China. CITIC is actively involved in the field of finance, investment and services. CITIC has 40 subsidiaries and banks worldwide with total assets of RMB268.2 billion (US$ 32.5 billion).