WUXI, China, Oct. 15, 2014 /PRNewswire/ -- Wuxi Suntech today announced it is adding another measure of protection for customer warranties: Its modules' performance will be insured by Chinese-based insurance company Ping An and reinsured by the leading risk carrier, Munich Re. This new insurance policy provides 25 years' warranty protection for Suntech in the event of a significant decrease of performance for modules -- a move expected to help expand sales by providing Suntech's customers with reassurance in the performance quality of their products.
"We have great confidence that our products are of the highest quality and are built to last," said Suntech CEO Eric Luo. "But to ensure our customers feel fully protected, our new insurance policy with Ping An and reinsurance by Munich Re will allow us to continue to honor our products' performance warranties, while still maintaining our strong financial balance sheet."
Suntech recently announced that its polycrystalline silicon modules ranked above industry standards in a technical review conducted by UK-based consultancy OST Energy. The announcement followed Suntech's modules receiving the VDE-Quality Tested certification, which recognizes products with a level of quality control that goes beyond existing standards in the photovoltaic industry.
"Thanks to the cooperation with our partner Ping An, we are able to provide an innovative performance warranty insurance solution for Suntech's modules that are fundamental to the sustainable success in the solar industry," said August Proebstl, Head of Corporate Insurance Partner at Munich Re. "It sets industry standards by being the first significant deal when it comes to volume insured and indemnity offered to a manufacturer domiciled in the People's Republic of China."
"We are excited to work with Munich Re under our Co-operation Agreement in the renewable energy sectors to support Suntech as it emerges with a new business strategy and grows in new verticals globally," said Mr. Xin Wang, General Manager of Property & Casualty at Ping An. "Our role is to promote and protect the development of Chinese PV companies and we are proud to offer reliable long term insurance coverage capacity to Suntech now and for many years to come."
Recently acquired by Hong Kong-based Shunfeng Photovoltaics Ltd., Suntech now has the strongest financial footing in the solar industry with nearly zero debt allowing the company to invest in growing the business through partnerships and expansion of its sales, marketing and services teams. Suntech will provide one-stop access to the Shunfeng family of companies including capabilities in design, engineering, manufacturing, construction, finance, insurance, operation and maintenance, energy storage, solar products and applications.
"With the backing of Shunfeng, we are in an even better financial position to continue to provide our customers with the highest quality products," said Luo. "We value the relationship we have with our customers. More than 30 million Suntech panels can be found in more than 80 countries, all of which will continue to enjoy the warranties documented in Suntech's original sales agreement. That's a commitment we publicly made shortly after our restructuring."
About Wuxi Suntech Power Co., Ltd.
Wuxi Suntech Power Co., Ltd., a company incorporated in the PRC in January 2001, produces industry-leading solar products for residential, commercial, industrial, and utility applications. Suntech has delivered more than 30 million photovoltaic panels or 8 GWs of installed capacity to more than 1 thousand customers in more than 80 countries. Suntech's pioneering R&D creates customer-centric innovations that are driving solar to grid parity against fossil fuels. Suntech's mission is to provide reliable access to nature's cleanest and most abundant energy source.
About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2013, the Group – which combines primary insurance and reinsurance under one roof -- achieved a profit of EUR3.3bn on premium income of over EUR51bn. It operates in all lines of insurance, with almost 45,000 employees throughout the world. With premium income of around EUR28bn from reinsurance alone, it is one of the world's leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2013, ERGO posted premium income of EUR18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re's global investments amounting to EUR209bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
About Ping An and Ping An P&C
China Ping An is the first insurance company in China to have a shareholding structure. Today, it has developed into an integrated financial services conglomerate with three core businesses: insurance, banking, and investment. As at December 31, 2013, the Group has approximately 557,000 life insurance sales agents, around 200,000 full-time employees and over 80 million clients. The Group's consolidated total assets and equity attributable to shareholders of the parent company amounted to RMB3,360 billion and RMB182.709 billion, respectively. Both Ping An Life and Ping An Property & Casualty are ranked the second largest in China in their respective areas in terms of premium income. Ping An Property and Casualty Insurance Company of China, Ltd. (Ping An P&C) has been a foundation for the business operation and development of Ping An Insurance (Group) Company of China for long. In the past 26 years, Ping An Property and Casualty has achieved steady development, with its business size growing year by year. Based on the approval by China Insurance Regulatory Commission (CIRC), its registered capital reached RMB19bn in 2014.Ping An Property and Casualty provides nationwide services through its 41 branches and over 2,100 business outlets in China; and has established survey agencies in around 400 cities across 150 countries and regions in the world, and developed business relations with over 160 insurers and reinsurers both at home and abroad.
SOURCE Wuxi Suntech Power Co., Ltd.