Insurance & Reinsurance 02 (Oct 14 - Dec 25)

[winston]

Insurer takes hit from investment performance

by Watson Tan

China's largest insurer, China Life Insurance (2628), saw net profit tank 44 percent to 19.1 billion yuan (HK$21.54 billion) in 2016 due to the poor investment performance predicted in an earlier profit warning.

Affected by the downturn of interest rate and fluctuations in the capital market, the company's gross investment income in 2016 was 108.15 billion yuan, down 22.8 percent year on year.

Gross written premiums increased by 18.3 percent from a year ago to 430.5 billion yuan, the fastest growth since 2009.

The insurer's new business value grew 56.4 percent year on year to 49.3 billion yuan, setting a record high. The company proposed a final dividend of 24 fen.

Elsewhere, China Taiping (0966) recorded a 24.7 percent fall in net profit to HK$4.77 billion last year after seeing a steep decline in net operating profit.

The board proposed a final dividend of 10 HK cents per share for 2016, the first dividend payout since it was listed on the local bourse a decade ago. Total premium increased 7.8 percent year on year to HK$149.3 billion. However, the net operating profit of life insurance business fell 27,7 percent to HK$4.84 billion.

Separately, the second largest insurer in China, Ping An Insurance (2318), said it was confident in maintaining a high-dividend policy and the payout ratio might be higher. For 2016, the company offered a total dividend of 75 fen per share, up 41.5 percent year on year.

Source: The Standard

http://www.thestandard.com.hk/section-n ... ?id=181162

[winston]

China takes down insurance regulator, capping a year-long industry shake-out

Source: SCMP

http://www.scmp.com/business/companies/ ... -violating

[winston]

CIRC bans universal life products as add-on to life policies

Life insurers could face potential squeeze in premium income as the CIRC continues curb risks stemming from aggressive investments, analysts say

Source: SCMP

http://www.scmp.com/business/banking-fi ... mhxpAhS.99[list=][/list]

[winston]

CN Insurers Sought after with Policy Support; Ping An A & H Leaps 4% to Nearly 2-year High

China Insurance Regulatory Commission (CIRC) issued details about investing with insurance capital in major projects, which will get policy support.

PRC insurers were broadly sought after today. Seeking for peak, PING AN (02318.HK) once rose to $48.2, hitting about 22-month high and last traded at $48.1, up 3.9%, being the best performer among blue-chips and HSCEI constituents for now, on rising volume of 34.85 million shares;

Ping An Insurance - A (601318.SH) also hit about 22-month high, once rose to RMB42.76 and last traded at RMB42.6, up 3.9%, on rising volume of 76.55 million shares.

CHINA LIFE (02628.HK) reclaimed 10-day MA , once rose to $25 and last traded at $24.85, up 2.5%; its A shares (601628.SH) soared 3% to RMB27.39. NCI (01336.HK) reclaimed 10-day MA, once rose to $40.9 and last traded at $40.75, up 2.9%; its A shares (601336.SH) rose 3.2% to RMB50.16.

CPIC (02601.HK) once rose to $29.25 and last traded at $29, up 1.6%; its A shares (601601.SH) rose 3.2% to RMB28.91.

Also, CHINA TAIPING (00966.HK) soared 3.6% to $20.4.

CIRC issued a notice about investing major engineering projects under debt investment plans. Under the prerequisite of controllable risks, the government supports using insurance capital to invest in major works which carry significant importance to macro-economy and regional economy.

Source: AAstocks.com

[winston]

Beijing’s financial crackdown good news for stocks of Chinese insurance companies

Shares of China Life, Ping An and New China Life reach highest levels in 17 months on expectations rising bond yields will boost investment returns

Source: SCMP

http://www.scmp.com/business/china-busi ... ks-chinese

[winston]

China: Macroeconomic and social development projects

The mainland insurance sector was firm as China insurers may be allowed to invest in macroeconomic and social development projects covering water- treatment, energy, transportation and new technology.

This would help to increase investment channels to diversify the risk of investing too much in A shares.

Source: Dr Check, The Standard

[winston]

HK: Insurance take soars by 20pc

by Dominique Nguy

Total gross premiums in the insurance industry in the first quarter rose 20.7 percent to HK$122 billion, compared with the same period last year, the Office of the Commissioner of Insurance said yesterday.

The total amount of revenue premiums of long-term in-force business was HK$108 billion during the period, up 22.8 percent over the same period in 2016.

Revenue premiums of individual life and annuity, non-investment-linked business increased 25.1 percent to HK$92.4 billion and individual life and annuity, investment-linked business dropped 3.5 percent to HK$7 billion.

Contributions of retirement scheme business grew by 32.2 percent to HK$7.1 billion.

Gross and net premiums of general insurance business recorded a growth of 6.6 per cent to HK$13.9 billion and 7 percent to HK$9.5 billion. Overall underwriting profit decreased from HK$574 million to HK$383 million.

BOC Group Life Assurance chief executive Terry Lo Kin-wing said yesterday its yuan insurance business fell slightly in the first quarter due to government policies restricting mainlanders buying insurance in Hong Kong and yuan weakness.

However, he believes Hong Kong's insurance products in general remain attractive to mainlanders. With the yuan stabilizing recently, he is optimistic about this year's yuan insurance business.

He added that the company remains the market leader in yuan insurance, with its market share rising to 81 percent.

In addition, Lo said BOC Life's standard premium of new business in 2016 has increased 47 percent, while its value of new business increased 30 percent in 2016.

He said the proportion of cross- border business compared to its overall business has risen from a single digit in 2015 to 20 percent in 2016 and the target for the next five years is for the cross-border business to go up to 40 percent.

He said the company plans to hire more and expand its number of insurance practitioners from about 450 to 800 this year. BOC Life's new customer center will open in mid-June and the company will focus on strengthening its products and service.

Source: SCMP

http://www.thestandard.com.hk/section-n ... 0601&sid=2

[winston]

China's Insurers Don't Know Their Own Risks

Business is booming. Watch out.

By Christopher Balding

In most countries, insurers are among the most staid and conservative companies in financial markets. In China, they're becoming some of the riskiest.

When Foresea Life Insurance Co. was barred from selling new products last month, the company threatened to block customer redemptions unless it was allowed to gear up again.

It issued something close to a threat, urging regulators to avoid "inciting mass incidents by clients and localized and systemic risks."

Source: Bloomberg

https://www.bloomberg.com/view/articles ... yptr=yahoo

[winston]

Beijing steps up crackdown on sales of Hong Kong insurance on mainland

The CIRC is determined to rid the industry of practices it says ‘disturb market order, mislead consumers and obstruct forex regulation’

It is illegal to sign a policy issued by a Hong Kong insurer on the mainland. Some institutions also crossed the red line by illegally soliciting consumers to buy insurance products in Hong Kong, the regulator noted.

Source: SCMP

http://www.scmp.com/business/banking-fi ... e-mainland

[winston]

Insurers get fund lift

by Janice Huang

Shares of mainland insurers rose on news that China will speed up development of a retirement fund.

Shares of Ping An Insurance (Group) of China (2318) rose by 3.6 percent yesterday, while PICC Property and Casualty Company (2328) increased by 2.7 percent.

The General Office of the State Council announced the speeding up of a retirement fund on Tuesday. By the end of this year, the authority will launch pilot schemes for pension insurance.

The China Insurance Regulatory Commission said last month that an insurance fund would take part in Shenzhen-Hong Kong Connect.

Analysts said the statement will be good for the economy in Hong Kong and for allocating resources both in Hong Kong and the mainland.

Source: The Standard

http://www.thestandard.com.hk/section-n ... ?id=184786