U.S. loan crisis meeting has evolved into a global financial crisis, domestic insurance industry is also deeply tired. October 8, the three major domestic insurance shares were down deep rate, China Life Insurance (601,628, it shares), China Ping (601,318 stock it) fell more than 9%.
In response, many in the industry and experts said that the financial crisis is also opportunity and a challenge, especially for market leaders, may be the first time the value of mergers and found time to pursue it. China's insurers "going out" strategy, should be more careful and pay attention to long-term gains.
Safely give up overseas expansion
Ping An of China recently announced that the company's decision to terminate its investment in Fortis Investment Management 50% stake in the agreement and intends to three 2008 Quarterly Bulletin of the Group of Fortis shares 15,700,000,000 yuan for investment impairment.
The industry said the investment would be offset by Fortis Jukui of peace in the first three quarters of profits and force the company to stop the overseas expansion plans. Give up the acquisition of Fortis Investment Management may be a positive act as a catalyst.
According to statistics, in 2007, Ping An of China net profit for the year 19,219,000,000 yuan. In the first half of this year, down by the capital markets, and other factors, Ping An of China in the first half net profit 7,310,000,000 yuan the same period last year dropped 12.2 percent. According to the Oriental Securities analyst basis, the three peace Quarterly Bulletin (in accordance with International Financial Reporting Standards) will be reported losses 2,000,000,000 yuan, basically the whole year in the vicinity of the break-even.
It is understood that by the end of November last year, Ping An average price of 19 euros per share to Fortis Investment Group; As of Oct. 3, Fortis shares for 5.41 euros. At present, China Ping An Fortis Group holding 4.99 percent stake in its investment Yi Suoshui more than 70%.
To the insurance industry or to re-shuffle
In addition to Ping An of China, other insurers have also been meeting U.S. loan crisis burn up. To China Life, for example, the New York-listed stock price has always been in the doldrums. Data shows that since October last year, so far, China Life's share price from the highest 106.63 U.S. dollars / share fell to 52.21 U.S. dollars / share (Oct. 3).
In a joint venture insurance companies, as foreign investment in this time of global credit crisis may be affected the extent of its direct impact on the conduct of business in China, will indirectly affect the whole Chinese insurance industry.
, A senior insurance industry analyst that the U.S. sub-loan crisis for the insurance industry in China is a huge test of China's insurance industry will face one of the industry, "shuffle", including foreign investment in the division of insurance, insurance agencies and so on, ranking May change.
The merger is also a good time
Zurich Financial Services Group of advisers member of the Investment Management also believes that the time of its loan crisis, was a very good investment opportunities through mergers and acquisitions will be able to further improve its market share.
There are also many domestic enterprises out of AIG previously favored an increase in the Hydrangea. It is reported that at present, including China Life, the strength of domestic and foreign financial and insurance institutions, to acquire all of AIG's insurance business showed a keen interest. AIG as a result of the Chinese people have property insurance Co., Ltd. 9.9% stake, is the People's Insurance Insurance of strategic investors. The People's Insurance Group life insurance business is in catching up and surpassing the current stage of development. As a result, there are rumors here that PICC shares of AIG's far more likely to be friendly.
In this regard, the Chinese People's Insurance Group President Wu Yan said on the 7th in Beijing, AIG recently regard to the People's Insurance will be given a clear statement, "Our attitude is that if they encountered difficulties, Baoding people will be saved shot."
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