Wider options may lift insurers' prospects
By Feng Jianmin |
August 21, 2012, Tuesday
|
Print Edition
Print Edition
WIDER investment options and the possible introduction of a tax-deferred pension this year may brighten earnings prospects for Chinese insurers, China Pacific Insurance Co said yesterday.
It said the tax-deferred pension plan, which has been suspended since 2009 when it was suggested, will start on a trial basis in Shanghai this year, opening new markets for the company's life insurance business.
Chairman Gao Guofu said that the insurer is confident that new life insurance business will emerge with new pension policies to be implemented and the demand by China's more urbanized, aging and rich population to be insured.
Pacific Insurance also said the wider investment options, including unsecured bond, non-financial company debt, and higher quota for private equity and real estate investment, will give insurers more freedom to maximize their capital.
Meanwhile China Pacific Asset Management Co said it will still allocate over 85 percent of its total investment in fixed income products, Yu Yeming, managing director, said.
He made the comment after the firm's net profit in the first half slumped 55 percent annually to 2.64 billion yuan (US$415 million) following an annual 10 percent fall in investment income to 7.58 billion yuan in the first six months, and growth in life insurance premiums slowed.
China Life Insurance Co had earlier warned of a "notable decline" in its first half profit.
Standard & Poor's last week cut the rating outlook on Ping An Property & Casualty Insurance Co to negative.
It said the tax-deferred pension plan, which has been suspended since 2009 when it was suggested, will start on a trial basis in Shanghai this year, opening new markets for the company's life insurance business.
Chairman Gao Guofu said that the insurer is confident that new life insurance business will emerge with new pension policies to be implemented and the demand by China's more urbanized, aging and rich population to be insured.
Pacific Insurance also said the wider investment options, including unsecured bond, non-financial company debt, and higher quota for private equity and real estate investment, will give insurers more freedom to maximize their capital.
Meanwhile China Pacific Asset Management Co said it will still allocate over 85 percent of its total investment in fixed income products, Yu Yeming, managing director, said.
He made the comment after the firm's net profit in the first half slumped 55 percent annually to 2.64 billion yuan (US$415 million) following an annual 10 percent fall in investment income to 7.58 billion yuan in the first six months, and growth in life insurance premiums slowed.
China Life Insurance Co had earlier warned of a "notable decline" in its first half profit.
Standard & Poor's last week cut the rating outlook on Ping An Property & Casualty Insurance Co to negative.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
