SPECIAL SPONSORED SECTION: Jincheng Tongda & Neal
February 16, 2018 | BY
Susan Mok &Jincheng Tongda & Neal landed the China insurance firm of the year award in recognition of its work helping international insurance companies navigate…
Jincheng Tongda & Neal landed the China insurance firm of the year award in recognition of its work helping international insurance companies navigate the complex and highly challenging regulatory landscape in the country.
Headed up by insurance practice leader Elizabeth Lan Lan, the firm has established itself as the go-to firm for some of the biggest global insurers seeking to enter the Chinese market. That process is not straightforward: applications are often hamstrung by the nascent and constantly shifting regulatory backdrop, and are therefore prone to long delays, not least because the regulator is currently operating without a chairman. The team's expertise and understanding of the common pitfalls that can derail licensing applications means JT&N is able to steer clients through the various phases of the process to ensure the speediest possible route to approval.
That deep knowledge of the regulatory climate means JT&N regularly acts for buyers and sellers in China-related insurance M&A activity, a market that is also hindered by indecision and a lack of regulatory clarity. Multiple amendments to rules around what type of investors are allowed to invest in the Chinese insurance sector means deals can frequently come unstuck as the goalposts move mid-transaction. Lan says this is where JT&N can give clients an edge by anticipating where the regulatory requirements are heading and advising buyers and sellers accordingly.
“We think we have a better understanding of what regulators want,” says Lan. “We keep a very close tap on what they're thinking about and what the right qualifications of buyers should be. We always tell clients not to overlook the details and don't cut corners, try to find really suitable buyers who are financially strong which can contribute to the insurance business and then you can make a good case in front of the China Insurance Regulatory Commission. One common mistake is that people don't do enough homework and then they turn around and hope CIRC somehow can exempt them from the rules.”
The firm has supported the China-related aspects of some of the world's largest M&A deals in the insurance industry, including ACE Group's roughly $30 billion merger with Chubb and the $18 billion merger between Willis and Towers Watson. JT&N continues to advise the newly merged Chubb on a range of strategic developments and post-merger integration issues. It also provides regular advice on Chinese compliance matters to a host of global insurers such as AXA Partners, Liberty Mutual and Swiss Re.
Even though the regulatory backdrop remains turbulent, Lan is optimistic that China's insurance market will continue to grow as rules on foreign investment are relaxed. “The future is bright because the Chinese leadership has repeatedly emphasized that it will continue to open up the financial market to foreign investments and that it will lower and ultimately phase out the cap on foreign ownership in life and health insurance companies,” Lan says.
“Companies just have to be patient right now.”
Elizabeth Lan Lan, Senior Partner
Jincheng Tongda & Neal ¦ 金诚同达律师事务所
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