Insurance companies be allowed to non-investment stake in listed companies

November 7, the China Insurance Regulatory Commission conference held in the third quarter.

Assistant to the chairman of the China Insurance Regulatory Commission Yuan Li said at the meeting, a few days ago, the State Council has approved insurance companies to invest private equity firms, the China Insurance Regulatory Commission for this purpose are the rules of the pilot.

According to CIRC statistics, 1-9 this year, the insurance industry to achieve the original insurance premium income 793,960,000,000 yuan, an increase of 49%. Among them, the property insurance business of the original insurance premium income 184,040,000,000 yuan, up 18.6 percent; life insurance business of the original insurance premium income 545,590,000,000 yuan, up 63%; health insurance business of the original insurance premium income 48,230,000,000 yuan, an increase of 72.3%; accident insurance business of the original insurance premium income 16.1 billion, up 7.8 percent.

As of the end of Sept., insurance companies, the total assets of 3.2 trillion yuan, an increase of 9.8 percent early next year, the use of insurance funds balance 2,880,000,000,000 yuan, representing a growth of 7.6 percent early next year, the 1-3 quarter, the use of insurance funds yield an average of 2.1 percent.

And the end of the first quarter of this year, the China Insurance Regulatory Commission published the structure of the use of insurance funds, this year's second and third quarter, the insurance funds investment strategy has made a significant adjustment to increase bond investment ratio, while reducing the proportion of the rights and interests of the investment category.

At the end of the quarter, insurance funds in bank deposits for investment 703,970,000,000 yuan, accounting for 24.5 percent in the first quarter. However, investment in bonds on the capital of 1,656,900,000,000 yuan, accounting for 57.6 percent, is higher than that in the first quarter of 49.4 percent, higher than 8 percentage points.

At the same time, insurance funds in the stock market, equity investment and securities investment funds amounted to 407,560,000,000 yuan, accounting for 14.2 percent, and other investment 107,700,000,000 yuan, accounting for 3.7 percent. But in the end of the first quarter of this year, the only insurance funds in the stock (equity) investment ratio as high as 13.1 percent, plus the securities investment funds 8.3 percent, the two together, the rights and interests of investment into more than two.

Yuan Li said, "from the industry as a whole, direct investment in A-share market to the principal amount of the loss has not happened, mainly a reduction of investment in the floating surplus, at the same time, investment funds have had some losses."

With the capital markets down, insurance companies, money that is spent on the new channel needs to upgrade again.

At the meeting, said Yuan Li, the China Insurance Regulatory Commission is to develop the investment of insurance funds is not a listed company's equity-related approach, in general principle is the premise of effective risk prevention, management norms preferences, investment ability, and be able to effectively control the risks Institutions, steadily carry out pilot projects.

Yuan further explained that the investment of insurance funds are not listed companies, including shares in two parts, is the main part of the investment in infrastructure, is the second part of the investment stake in unlisted companies.

At present, the insurance fund's equity investment in infrastructure, mainly concentrated in the Beijing-Shanghai high-speed rail, and other scarce resources, the State Council recently approved the expansion of insurance capital investment in infrastructure can be a pilot.

But for the second part of the investment in unlisted companies share the specific projects, the ratio, the China Insurance Regulatory Commission will make further guidance. Yuan Li said.

Conducting the Second Amendment's "Insurance Law" in reference to the insurance funds can invest in real estate, insurance funds for the diversification of use and opened up a channel. In response, Yuan Li said that at present, domestic insurance companies in the real estate investment, mainly in their own property, virtually no investment in real estate development and sales, real estate, and so on.

The global financial crisis, the overseas investment of insurance funds become more and more inscrutable. However, Yuan Li said at the meeting that the China Insurance Regulatory Commission will not limit foreign investment in insurance companies, insurance funds to invest outside the country in line with the "going out" strategy. However, the China Insurance Regulatory Commission will guide the insurance sector experience, lessons and improve the system and standardize the operation, according to their ability to carry out robust foreign investment.

International financial crisis broke out, the China Insurance Regulatory Commission has been set up and work-related research group, follow the latest developments in the international financial markets, timely analysis of the domestic insurance industry, study and formulate plans to deal with risks.

At the same time, said Yuan Li, the China Insurance Regulatory Commission has launched emergency mechanism to prevent cross-border transmission of financial risks. All risk insurance investigation, insurance funds to strengthen the monitoring of cross-border flows.