Lloyd’s looks set to make a significant foray into Chinese insurance with the opening of its first office there later this year.

After years of lobbying, the London-based insurance market has won the right to establish a reinsurance operation in China. The licence applies from this year.

Chairman Lord Peter Levene says the group already does business with China from the outside. “Once we are inside it will be a different story.”

He expects some Chinese insurers will join the group of 62 underwriting syndicates.

The push into the world’s most rapidly developing economy comes after an annual survey of Lloyd’s underwriters showed strong confidence in China as a business destination. Some 22% of respondents considered it the best opportunity for business growth in 2006.

Among the 1.3 billion Chinese is a growing middle class that is fast increasing its demand for insurance and risk management strategies.

Lord Levene says Lloyd’s is also considering a push into India, although this will be dependent on the market there relaxing rules on foreign insurers.