AMP Buys 20 Percent Share from China Life Pension Company

AMP, a leading wealth management firm in Australia and New Zealand, has extended its stocks in China as the company purchased a 19.9-percent share from the country's biggest pension corporation, China Life Pension Company. 

With AMP's purchase of $240 million shares from China Life, the Australia-based firm is the very first to acquire shares in a Chinese pension firm.

The investment will allow the foreign firm to provide pension services across the country through its three newly acquired licenses. It will also be supporting the company's penetration in China's fast-rising corporate pension market.

Showing their strong business partnership, AMP and state-owned China Life launched their first bilateral fund earlier this year. The two firms signed the Memorandum of Understanding in August 2009. AMP currently holds 15 percent of the bilateral fund collaborative venture.

Craig Meller, AMP chief, said that with their continued funds management success from the previous year, the company is excited with collaborating with China Life and helping it expand its pension business by utilizing AMP's specialties such as investment management and corporate superannuation.

The massive acquisition is expected to break even in the upcoming two years. The prospect is not far from possible, with the corporate pension sector expanding at a rate of 26 percent annually.

Founded in 2006, China Life Pension Company aims to serve both private and state-owned firms by providing enterprise annuities services. It is one of the only five Chinese corporate insurance firms.