In March 2005, the full payment of RMB20 billion for the group policy signed between Generali China Life Insurance Co., Ltd. (Generali China) and China National Petroleum Corporation (CNPC) was settled. The policy provides a retirement scheme which pays a lifetime immediate annuity to 390,000 CNPC retirees and helps Generali China become the largest joint venture insurance company by total premium income.

The project stems from the strategic cooperation between the Generali Group and CNPC. With the specific know-how in the life insurance business, the Generali Group has provided Generali China with the technological, organizational and financial skills necessary to manage one of the single largest immediate annuity contracts in the world. Being one of the largest Chinese multinational corporations, CNPC has contributed to Generali China with the market resources, service network and steady financial support to make this unique project come into reality in such a short period of time.

The underwriting process strictly follows the industry standard, minimizing business costs and optimizing the resources allocation. Furthermore, the benefit scheme is customized to the needs of CNPC retirees to ensure those who had contributed greatly to the development of Chinese petroleum industry obtain a better life-time benefit.

Backed by its multinational team, high quality service, advanced IT system and policy processing system, Generali China will fulfill the requirements of the customer. In terms of service, Generali China will cooperate closely with CNPC to provide individualized services to the insured. In order to minimize the risk of the project the Generali Group, as one of the major asset management corporations in the world, is providing Generali China technological know-how in terms of risk management; while CNPC will also play an important role in supervising the investment management and other relevant operations affairs.

In spite of the nature of premium, both in terms of size and its non-recurrent nature, the result achieved paves the way for the development of Generali China in the group insurance sector in the People’s Republic of China. In December 2004, Generali China was granted the group life insurance license by the China Insurance Regulatory Commission and since then can offer the local market a full range of life insurance products from life, health to pension benefits.

The rich experience and technological strength of the Generali Group paves the way for the group life insurance development of Generali China. Being a specialized business unit within the Generali Group, the Generali Employee Benefits Network (GEB Network) since 1966 is one of the oldest international pooling networks. GEB Network covers over 70 countries and provides cross border comprehensive employee benefits plans for multinational companies. As a GEB pooling network partner, Generali China provides services to enterprises of any size, active in any economic field in the vast Chinese market with the support from a team of 50 international employee benefit experts and 80 local network partner specialists. Generali China provides overall daily management service, global risk analysis, technical underwriting advice on the best suitable types of programs and delivery of multinational results to its clients in order to definitely add value to its clients’ business.