Insurer sheds as profit falls 36% in Q3
By Jane Feng |
October 20, 2011, Thursday
|
Print Edition
Print Edition
SHARES of China Pacific Insurance Co, the nation's third-biggest insurer, dropped by the most in three weeks in Shanghai yesterday, after reporting worse-than-expected profit in the third quarter due to losses from investments.
The Shanghai-listed shares lost 3.7 percent, the biggest daily drop since September 26, to end at 18.60 yuan (US$2.92).
The insurer's Hong Kong shares also fell 4.4 percent to end at HK$22.70 (US$2.92), extending this year's decline to 30 percent. The Hang Seng Index rose 1.3 percent.
The shares dropped after the insurer's profit plunged 36.4 percent in the third quarter from a year earlier to 670 million yuan after non-recurring items were excluded.
Including those items its third quarter profit rose 35.6 percent from a year earlier to 1.2 billion yuan.
The Shanghai-based insurer blamed the profit drop to rising management expenses and commissions and a 15 percent slump in the key Shanghai Composite Index, according to a statement on its quarterly performance.
"The profit of the company is below our expectations as return on investments (ROI) was poor from both a weak stock market and bond market," said Mao Junhua, an analyst with China International Capital Corporation.
He said the insurer's ROI in the third quarter tumbled 42.5 percent from the previous three months to 3.6 billion yuan.
Ping An Insurance Co and China Life Insurance Co will release their third quarter results next week.
The Shanghai-listed shares lost 3.7 percent, the biggest daily drop since September 26, to end at 18.60 yuan (US$2.92).
The insurer's Hong Kong shares also fell 4.4 percent to end at HK$22.70 (US$2.92), extending this year's decline to 30 percent. The Hang Seng Index rose 1.3 percent.
The shares dropped after the insurer's profit plunged 36.4 percent in the third quarter from a year earlier to 670 million yuan after non-recurring items were excluded.
Including those items its third quarter profit rose 35.6 percent from a year earlier to 1.2 billion yuan.
The Shanghai-based insurer blamed the profit drop to rising management expenses and commissions and a 15 percent slump in the key Shanghai Composite Index, according to a statement on its quarterly performance.
"The profit of the company is below our expectations as return on investments (ROI) was poor from both a weak stock market and bond market," said Mao Junhua, an analyst with China International Capital Corporation.
He said the insurer's ROI in the third quarter tumbled 42.5 percent from the previous three months to 3.6 billion yuan.
Ping An Insurance Co and China Life Insurance Co will release their third quarter results next week.
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