China's first joint-venture life insurer Manulife-Sinochem Life Insurance Co Ltd (MSL) expects its premium earnings to rise rabidly this year, on the strength of quick geographical expansion in the past two years, China Daily reported Saturday.

"Based on what we knew about licence applications and new office openings a few months ago, we expect at least 50 percent growth in our premium earnings," the English newspaper quoted president and CEO of Manulife Financial Dominic D'Alessandro as saying.

The Shanghai-based joint venture insurer posted 700 million yuan (87.5 million U.S. dollars) in total premium income in 2005, an increase of 17.5 percent over the previous year, according to the newspaper.

The company's premium growth outpaced the market average in Shanghai last year, but lagged behind the rate posted by the city's foreign-invested insurers.

Premiums collected by all Shanghai-based life insurers rose by 5.4 percent to 24.4 billion yuan (3.1 billion U.S. dollars) in 2005. Insurance premiums gathered by 24 foreign-invested insurers rose by 27.1 percent to 5.82 billion yuan (727 million US dollars), the daily said.

In 10 years time, the joint venture insurer expects its premium income to be 10 times its current figure. A similar growth rate is also expected in its total assets, geographical presence and number of employees, it added.

Manulife-Sinochem began operations in Shanghai in November 1996. The joint-venture insurer's Chinese parent company is China Foreign Economy and Trade Trust and Investment Company under Sinochem Corporation. Manulife Financial holds a 51 percent stake of MSL while Sinochem holds the remaining 49 percent.

Source: Xinhua