AXA XL has announced its China subsidiary, XL Insurance (China) Company Limited has received green light from China Banking and Insurance Regulatory Commission (CBIRC) to change its business license in China from an insurance license to reinsurance.

The new reinsurance legal entity will be named XL Reinsurance (China) Company Limited (AXA XL Re China) after the registration process is finalised. AXA XL Re China will be the first reinsurance subsidiary domiciled in Shanghai and the first foreign-owned reinsurance subsidiary in China. It will provide non-life reinsurance in China.

Commenting on the development, Peter Schmidt, chief executive of Emerging Markets and CUO Credit and Surety – Reinsurance said: “Being the first foreign-owned reinsurance subsidiary in China further demonstrates AXA XL’s commitment to the Chinese market. This move is in line with the Shanghai Government’s policy of establishing the Shanghai international reinsurance centre.”

Ann Chua, head of Asia for AXA XL’s reinsurance business commented: “We have strengthened our in-country team. This… means we can provide our clients and brokers with even greater value and services in this important and dynamic market.”

“China is a key market for us, and we look forward to continuing these partnerships as an onshore reinsurer,” added Phil Xue, head of Reinsurance and country manager for China.