OREANDA-NEWS. May 29, 2014. Citibank (China) Co., Ltd. ("Citi China") and AIA China ("AIA") today jointly announced the commencement of their new bancassurance partnership in mainland China, one of the first implementations amongst the 11 markets in the Asia-Pacific region covered by the exclusive, long-term agreement. Citibank customers in Shanghai, Beijing, Guangzhou, Shenzhen, Nanjing and Wuxi will have access to a wide range of AIA's insurance solutions via Citi China's retail network.

The strategic alliance builds on the strong presence, complementary strengths and established bancassurance capabilities of Citibank and AIA, both in China and around the region. The new partnership is expected to deliver significant value to Citibank clients, who stand to benefit from Citibank's strong advisory capabilities and AIA's market-leading life protection solutions ranging from retirement, elite junior wealth management to legacy, the latter a premium tailor-made service for Citibank's high–net-worth customers.

Mr. Jonathan Larsen, Citi's Global Head of Retail banking and Asia Pacific Head of Consumer Banking noted, "As Asia's leading retail bank, we are excited to create Asia's leading bancassurance partnership with AIA. The exclusive long term distribution partnership provides the opportunity for Citi and AIA to offer world class life insurance products in one of the world's fastest growing wealth management regions. With a dedicated partnership, we can leverage AIA's insurance expertise to create innovative products that more directly meet the growing needs of our customers and deliver better value and service."

Mr. Keng Hooi Ng, Regional Chief Executive Officer of AIA Group noted, "We are delighted to be commencing our bancassurance partnership in what is a highly important market for both of our companies. We believe that we are well placed to deliver value to Citibank customers in China. Both of our companies have strong and well-established brands here and a long history in and demonstrated commitment to China. Citibank is the leading retail bank operating in the high-net-worth space, and AIA is committed to helping Citibank significantly enhance its value proposition to its customers by improving its range of insurance product offerings, which reflect Citibank customers' differing priorities, needs and circumstances."

Coinciding with the start of the partnership, a first-to-market Joint Life Annuity Product, known as "NianNian You Yu", was also launched. The new offering is designed especially for couples. Should death or permanent disability occurs to someone covered by the policy, that individual's spouse will have their remaining premium waived, and also be offered an extra 50% of the yearly living annuity to ensure maximum protection, care and quality of life.

Mr. Andrew Au, Chief Executive Officer of Citi China, said, "We are excited to implement this milestone partnership in China. Today's launch of China's first Joint Life Insurance solution is a strong testament to the potential of this partnership. We aspire to look after all the financial planning needs of our customers over their entire life cycle, with world-class, high-quality life insurance products and services from AIA, we are better placed to achieve that goal."

Mr. John Cai, Chief Executive Officer of AIA China, said,"Like Citi, we are very optimistic about China's future. As China's economic growth leads to steady increase in income and wealth across the nation, and the growth of middle class, insurance protection and savings needs are also expected to increase significantly. This is why we custom-made China's first Joint Life Insurance solution. Leveraging on Citi's strategic retail network in six high-income cities as well as the strong product development capacity of AIA, we will better deliver our commitment in developing China's insurance market."

In addition, three other selected AIA insurance solutions spanning from Elite Junior to Protection, such as education endowment, critical illness and whole life, will be offered to Citibank customers. More insurance solutions will be introduced subsequently, meeting the increasing needs of customers for having insurance as part of their total wealth management portfolio.

In December 2013, Citibank N.A. and AIA Group Limited reached an agreement on an exclusive landmark bancassurance partnership to offer life insurance through Citibank's multiple distribution channels in Asia, delivering greater values and services to customers in the region who are increasingly seeking better solutions for their insurance needs. The scope of the transaction makes it the largest bancassurance agreement ever signed in the region, covering 11 markets including mainland China, Hong Kong, Australia, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Subject to local regulatory requirements and certain existing obligations, the agreement provides AIA Group Limited with the right to distribute, on an exclusive basis in all markets permitted, non-credit life insurance products to Citibank clients.