Shanghai Bao Jianju: foreign enterprises in Shanghai insurance premiums negative growth

Foreign insurance companies in the domestic situation increasingly difficult. Yesterday, the Shanghai Bao Jianju news briefing reports show that as at the end of Oct. this year, foreign-funded insurance companies in the Shanghai market in terms of premium income 8.4 billion, up 17%.

Industry analysts have said that the global financial crisis, domestic capital markets slump, as well as the localization of foreign insurance companies operating, as a result, foreign insurance companies is the main reason for the decline in performance.

Market share was halved

Over the past year, foreign-funded insurance companies in Shanghai's market share has been cut nearly half. Bao Jianju show that as at the end of October this year, the Shanghai market, the Chinese-funded insurance premium income of 43.6 billion, while foreign-funded insurance premium income of 8.4 billion, foreign-funded insurance market share of only 16%. It is learned that the Shanghai market, foreign insurance companies in the country accounted for nearly 25% of premium income.

The global financial crisis, foreign insurance companies to make life more difficult. Insurance giant AIG has accepted the U.S. government as much as 150,000,000,000 U.S. dollars assistance program (of which 110,000,000,000 U.S. dollars for loans 40,000,000,000 U.S. dollars for the purchase of shares).

Assistant Secretary of the Shanghai Bao Jianju said Li Feng, AIG's acceptance of the Federal Reserve 110,000,000,000 U.S. dollars loan, the loan interest rates higher, loans a relatively short period, therefore, AIG did not rule out the possibility of selling one's assets and debts. However, despite the sub-AIG loan by the impact of the crisis, but the insurance group's traditional insurance business, as well as the Asia-Pacific market is still relatively stable. AIG subsidiaries in China and the United States and Asia Insurance Assurance Company, currently operating a normal situation, adequate solvency, and there was no influx of surrender.

Data show that in October this year, AIG in Shanghai in the market in terms of premium income fell 18.7 percent, while other foreign-funded insurance premium income fell more, Germany Allianz 79% reduction in the United States Metropolitan Life Insurance dropped 81 percent. However, foreign investment and line performance compared to the tight, domestic insurance companies have shown good momentum of development. As of this year by the end of October, Shanghai's insurance market to achieve premium income 52,000,000,000 yuan, an increase of 32%. Among them, Chinese-funded insurance premium income of 43.6 billion yuan, up 49%.

Dragged down the performance of the three major reasons

The global financial crisis, foreign investment is the main reason for tight line performance. Orient Securities analyst Wang Xiaogang said, "by overseas insurance companies before their overseas professional and global network to attract domestic customers. As a result, there is no doubt that the global financial crisis, they greatly reduced the attractiveness of."

Domestic stock market, making foreign-funded insurance companies to launch investment-linked insurance products of poor sales, dragged down his performance, analysts have said so.

Foreign insurance companies also fell because the results in the localization of operating a disadvantage there. Li Feng said, and Chinese-funded insurance companies, foreign insurance sales channels rarely, mainly in the main channel Banking and Insurance, but recently the China Insurance Regulatory Commission on Banking and Insurance channels for insurance regulation and restrictions on insurance companies selling insurance products through banks , The performance of foreign-funded insurance companies on the natural decline.