MAPFRE (Stock: MAP.BMAD) and China Re (Stock: 1508.HK)have signed a memorandum of understanding to collaborate on insuring investments related to the Belt and Road Initiative (BRI), a massive infrastructure plan launched by the Chinese government in 2013 to connect China with the world’s major economies.
As part of the agreement signed between the two companies, MAPFRE will offer insurance and reinsurance support to Chinese interests in Latin American and European countries where it has a local presence. MAPFRE will also act as cedant for China Re on projects of interest to both parties.
China Re is the largest reinsurer in China and Asia, and the owner of China Continent, one of the five largest insurers in the Chinese market. MAPFRE and China Re have been collaborating for a number of years, in both reinsurance transactions between both, and in roadside assistance, through their respective subsidiaries, Road China Assistance and China Continent.
The BRI is a long-term intercontinental project that includes the construction of roads, railways, ports, airports, oil and gas pipelines and power plants, but also includes other projects, such as educational programs and the construction and development of special economic zones. China and 131 other countries are currently BRI members, together accounting for 30% of global GDP, 62% of the world’s population and 75% of known energy reserves.