Cut the risk of bad effects of incremental rate risk by funding a larger negative impact on

Insurance companies to cut interest rates on the bad effect of yesterday's stock price has not reflected on. Yesterday, China Life Insurance (601,628, it shares), China Pacific Insurance (601,601, it shares) and Ping An of China (601,318, it shares) shares rose together, or 0.97 percent respectively, 0.09 percent and 0.54 percent, but the overall performance than Shanghai Composite Index rose 1.05 percent.

Guotai Junan analyst Yu-Long Peng said that the insurance industry, to cut interest rates for investment in the stock of insurance funds have a limited impact. Insurance bonds held most of the longer period, coupled with bonds held at the beginning of the low level of interest rates, even if the maturity of the bonds, the yield rate of its impact is small. As for the bank deposits, floating rate deposit account due to the relatively small and therefore not affected.

Yu-Long Peng said the rate cut on the new insurance funds, as well as part of the maturity of the stock of insurance funds, or have more negative effects, because bond yields will be greatly affected, EMC Insurance Securities analyst Yang Jianhai said that this At the central bank to cut interest rates 1.08 percentage points, 5-year bonds will yield fell to 2.2 percent level, but the additional cost of access to insurance funds will not be lower than 2.5 percent.

GF Securities analyst of the insurance industry stem CAO Heng said that between the central bank to cut interest rates sharply this factor has been added to the insurance funds investment yield down 200 basis points.

As an insurance company, which cut interest rates by a greater impact, said Yang Jianhai, in a low interest rate environment, Ping An of China as a result of the balance of the cost of the least flexible, be cut interest rates by a larger impact on the insurance companies. The safe was flexible minimum liability costs, mainly due to its high interest rate policy is the proportion 3 of the highest in the company, and the high interest rate policy is characterized by the balance and higher fixed costs (about 6%). Ping An insurance policy of high interest rates is the proportion 1 / 3, Taibao the proportion is 1 / 5, the life insurance policy did not Gao interest rates.

However, the rate cut, or there are some favorable factors. Yang Jianhai said the rate cut after the current one-year deposit interest rate has dropped to 2.52 percent, with interest rates expected in the insurance industry are basically the same. If the market is still expected to have to cut interest rates, insurance products, the relative attractiveness of yields will be, so as to promote premium income of rapid growth.