Sino French Life Insurance Co.Ltd – a joint-venture between China Post and CNP has been approved by CIRC to be set up and completed the registration at Beijing Administrative of Industrial and Commercial on 23 Dec, 2005.

Each shareholder of SFLI holds 50% of shares, aiming at merging the powerful distribution network of China Post and professional experience of CNP, combining needs of Chinese customers and western management model together, to become an important member of China insurance market.

China Post is one of China’s biggest financial networks. It owns 77000 outlets, more than 36000 of which offer a series of financial products and services to Chinese customers. Ordinary people of China have strong faith on this convenient network which is also close to their daily life. Developing insurance business was considered as one important step for China Post to provide excellent financial products and services to ordinary people. In the year of 2005, the total amount of insurance business sold by China Post exceeded RMB 23 billion yuan. At the beginning of 2006, postal insurance business welcomed a good momentum of rapid growth. Only in January and February, the total nationwide postal insurance income reached 6.36 billion yuan, increased by 90% in comparison with the same period of last year.

CNP is the biggest life insurance company in France which has 150 years history. through allying with French Post, CNP represents more than 10% of French market.CNP has 17000 outlets in France, each outlet sells its products to French customers. Its premium income reached 26 billion euro in 2005. Long term collaboration experience with postal network is an important part of CNP’s expertise, which enables CNP to join hands with China Post to enter Chinese insurance market.

On 27 Feb, 2006, presided by Chairman Liu Liqing (former president of China Post ), SFLI held its first board meeting. Under the approval of the Board, Mr Christian Bisschop was appointed as General Manager, Mr. Han Liwen and Zhu Zongshu would hold the post of Vice General Manager. Mr. Christian Bisschop was designated as chief representative of CNP Beijing Representative Office since 1997. Vice General Manager Han Liwen was a senior postal financial administrator. Vice General Manager Zhu Zongshu was a senior insurance business administrator of postal saving system.

The board of SFLI also confirmed the company’s commercial principle and development strategy, and insurance business agency agreement between SFLI and Beijing Post. In Beijing area, SFLI would first start its bancassurance business, and insurance policies will be sold to customers through postal savings outlets of Beijing Post.

Today (24 March), SFLI launched its first insurance product, ''HongQiLin endowment (participating) ''.  Participating insurance is a type of  life insurance product which combines functions of life cove and saving management. As a main force in the bancassurance channel, this product has double effects on insurance and investment which can help customers against life risks, to enjoy guaranteed interest rate, and to share the operating profit of insurance company.

Beijing Post currently is the only distribution channel of SFLI’s insurance product.  At the beginning of SFLI’s operation, customers could buy SFLI’s Hong QiLin insurance product at the saving outlets of Beijing Post.

On one hand, the domestic insurance market is in rapid expansion, on the other, the competition is fierce and escalates. Facing such opportunity and challenges, SFLI would take advantage of the alliance of two shareholders and develop its own specialty in bancassurance to become bigger and stronger as quickly as possible. To carry out business development strategy and meet actual work needs, SFLI would open up branches in other provinces and cities outside Beijing from 2007, so as to broaden geographical scope of business and further develop Chinese market. (news release of company)