Manulife Says China Still Very Much Part of Its Plans

China is still very much a part of Manulife Financial’s (MFC) plans, the company said Wednesday after local media reports suggested foreign insurers were planning to leave the country.

Manulife Financial today affirmed that it continues to focus its strong operational growth in China through its highly successful Manulife-Sinochem Life Insurance Co. Ltd. partnership, which is currently licensed in 36 cities across 10 provinces in China,” the insurer said in a short statement.

The insurer said it has 11,000 “professionally trained” staff and agents serving 450,000 customers in the country.

Manulife also reiterated that it plans to sell its 50 per cent stake in Hancock Tianan Life Insurance, which it acquired in the 2004 merger with U.S. based John Hancock.

“The completion of this non-material transaction achieves Manulife’s long-held intention to focus on its original partnership with Manulife-Sinochem.”

The Chinese market is coveted by many insurers because of its growth potential. In August, Finance Minister Jim Flaherty led a delegation of representatives from Canadian financial institutions to China, including the chief executives of the country’s largest life insurers, Manulife and Sun Life Financial Inc (SLF).

At the end of August, Fairfax Financial Holdings Ltd (FFH) made its first foray into China with the purchase of a 15 per cent stake in Alltrust Insurance Co. of China for about $66-million (U.S.).