Groupama will create a joint venture in China

Aviation Industry Corporation of China and Groupama join forces to expand in China's property and casualty insurance market

Mr Jean Azéma, CEO of Groupama and Mr Gu Huizhong, Vice President and CFO of AVIC Group (Aviation Industry Corporation of China) Group, have signed a memorandum of understanding at the Elysée Palace in the presence of Mr Nicolas Sarkozy, President of the French Republic and Mr Hu Jintao, President of the People’s Republic of China, in order to finalise an agreement to create a joint venture by 31 December 2010.

The joint venture is expected to enable both partners to expand in the field of non-life insurance in the People’s Republic of China.
The new company, whose creation will be contingent on the approval of the competent authorities, will be owned equally by AVIC and Groupama.

Its objective will be to become one of the leading players in the commercial, individual and agricultural insurance segment in China.
China is the world’s sixth largest insurance market (75% life insurance and 25% non-life insurance), with average annual growth of 24% between 2000 and 2009.

The joint venture will leverage the expertise of Groupama – a mutual insurance group that has been involved in insurance for more than 100 years, operates in 14 countries and has been established in Sichuan Province since 2003 – and the might of the AVIC Group – one of China’s leading industrial groups, involved not only in aeronautics but also in logistics, the motor industry, civil engineering and asset management.