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AEGON-CNOOC Life Insurance, ABC join hands
By Chen Qide (China Daily)
Updated: 2004-10-21 08:50

AEGON-CNOOC Life Insurance Company yesterday signed a nationwide co-operation agreement with the Agriculture Bank of China (ABC), meaning its business will soon step out of the metropolis into other parts of China.

Under the agreement, the two partners will conduct comprehensive co-operation on a commission agency, payment, cash management, e-commerce, direct marketing and telemarketing.

"It is a long-term partnership that enables us to complement each other and achieve better resource deployment," said Ringo Choi, president and chief executive officer of AEGON-CNOON.

AEGON-CNOOC, as a joint venture between the AEGON Group and China National Offshore Oil Corporation established in May 2002, is currently confined to doing business in Shanghai.

Last December, it signed a regional agreement with Shanghai Pudong Development Bank to conduct insurance business in Shanghai.

"The current agreement with ABC signifies an important milestone in our expansion plan to become a nationwide insurance player in the China market," Choi said.

The co-operation also echoes ABC's strategy to extend its banking business into insurance, said Yang Kun, vice-president of ABC.

According to Choi, AEGON-CNOOC has delivered an application to the China Insurance Regulatory Commission for approval to set up a subsidiary company in Beijing.

Next year, the insurance company plans to set up a subsidiary in Jiangsu, Zhejiang and Liaoning provinces respectively to expand its business through ABC's banking network.

As one of China's four largest State-owned banks, ABC has 37,000 outlets nationwide, which will greatly aid AEGON-CNOOC in the expansion of its insurance business.

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