Manulife Financial Corporation (TSX:MFC), Canada’s largest insurance company, has signed a new co-operation agreement with the Bank of China.
The two-year deal was signed Wednesday in Beijing and will boost co-operation in areas such as insurance custody and bancassurance in China and other business dealings between the two financial companies in North America.
Bancassurance is the term used to describe the partnership between a bank and an insurance company whereby the insurer uses the bank sales channel to sell insurance products.
The two companies signed a bancassurance deal last May.
Manulife CEO Donald Guloien said the deal will help both companies grow their business.
“As more and more Chinese and Canadian companies and citizens look to each other’s home country for business opportunities, academic pursuits or simply as a holiday destination, we view closer co-operation between Bank of China and Manulife as an opportunity to realize business opportunities together,” Guloien said in a speech at the signing ceremony at the Bank of China head office in Beijing.
Manulife already has a growing stake in China through its joint venture life insurance company, Manulife-Sinochem Life Insurance.
The company also has a wealth management joint venture business in China.