Lloyd’s and the China Taiping Insurance Group have signed a memorandum of understanding (MOU) to mark the “significant level of co-operation” between the London-based specialist insurance and reinsurance market and China’s oldest insurance company.

The agreement was signed in London last week by Lloyd’s Chairman John Nelson and China Taiping Chairman Wang Bin to coincide with President Xi Jinping’s state visit to the United Kingdom.

The memorandum commits Lloyd’s and China Taiping to work towards achieving “complementary and collaborative development of local and global markets”.

China Taiping’s Taiping Reinsurance Company has become a member of Lloyd’s and its Taiping Reinsurance Brokers has become a Lloyd’s registered broker.

The two sides have committed to sharing knowledge and expertise and co-operating on training and talent development.

Mr Nelson says the aim of the agreement is the “further internationalising” of Lloyd’s capital base and to reinforce its global position.

“China is an important part of Lloyd’s future strategy and this memorandum of understanding will enable us to deepen our understanding of the market and improve the support we are able to provide,” he said.

Mr Wang also sees the MOU in a global context.

“The establishment of the co-operative relationship with Lloyd’s is a significant strategy for China Taiping to elevate its internalisation… strengthen its reinsurance business capability and expand its overseas business network,” he said.

China Taiping was established in Shanghai in 1929. It is now based in Hong Kong and is listed on the Hong Kong Stock Exchange.