China Merchants Bank Co. Ltd. entered into a business cooperation agreement with Anbang Insurance Group Co. Ltd. for a term of three years.
Under the agreement, China Merchants Bank will provide Anbang Insurance with agency sales services of insurance products and will receive service fees for agency sales. The agreement will last from Jan. 1, 2018, to Dec. 31, 2020.
While China Merchants Bank has been providing services for agency sales of insurance products to Anbang Insurance for the past three years ended Dec. 31, 2017, the bank said the agreement is conducive to the regulation and supervision of the continuing connected transactions between the two companies.
The agreement also lays a sound foundation for future business development, the bank added.
China Merchants Bank proposed setting an annual cap of 1.5 billion yuan in respect of service fees for agency sales of insurance products to be received from Anbang Insurance.
As of March 20, US$1 was equivalent to 6.33 Chinese yuan.