Manulife sets out to track AIG, as a gaggle of insurers jostle for licences

FOR the past 18 months, Manulife Financial has watched with envy from the sidelines while rival American International Group (AIG) has revelled in being the first foreign insurance company to do business in China for more than 40 years.

But the Canadian life insurance company, which has total assets under administration of more than C$57 billion (about HK$319 billion), hopes soon to gain a foothold in a market that has the potential to develop into the world's largest.

Manulife's keen interest in China is shared by many rivals, as 12 life and 20 general insurers also are battling to gain entry into the market.

Victor Apps, Manulife Financial vice-president and general manager for Hong Kong and China, said an application was made last year for a licence to sell life insurance in Shanghai, but when it might be granted was unknown.

In fact, Mr Apps said there was growing speculation that Japan's Tokio Marine & Fire - which sells general insurance such as fire, industrial and property policies - could be the next foreign firm to receive a licence.

Mr Apps said Manulife started researching its re-entry into China about four years ago and has made a strategic objective to gain a licence to expand its fast-growing Asian operations.