Lloyd's said it has received the formal licence document from the Chinese regulators to begin operations for its new reinsurance company in Shanghai, Lloyd's Reinsurance Company China Limited (LRCCL).
The licence, approved by the Chinese Insurance Regulatory Commission (CIRC), will enable Lloyd's to underwrite onshore reinsurance business throughout China.
It will provide Chinese insurers with full access to the Lloyd's market and give Lloyd's improved access to the rapidly developing Chinese reinsurance market.
Lloyd's Chairman, Lord Levene, welcomed the approval saying: "Today marks a major milestone in Lloyd's global development. We are an international market with a presence in over 200 countries. Lloyd's reinsurance operation in China will enable us to expand our global footprint and support one of the fastest growing economies in the world.
"Lloyd's has a long relationship with the Chinese insurance market and has supported Chinese insurers by providing offshore reinsurance capacity for over three decades. Our new operation will enable Lloyd's underwriters to develop a stronger relationship with Chinese insurers and provide them with the additional capacity to support their rapid growth."
It is expected that Lloyd's market 'A' ratings will apply to LRCCL.
