Decline in investment income insurance giant three in the third quarter reduced net profit

In recent days, China Life, Ping An of China (601,318, it shares), China Pacific Insurance (601,601, it shares) have released third quarter results show that the three giant insurance sharp decline in net profit. The main reason is involved in the domestic and international capital markets substantially, investment income, the fair value of exchange rate losses, as well as serious, resulting in a loss of performance. However, the insurance giant's three main business are showing good growth.

China Life net profit down 70

China Life shows that three of the Quarterly Bulletin, the net profit 2,339,000,000 yuan, 0.08 yuan basic earnings per share were 70 per cent reduction in the same period last year. Quarterly Bulletin, said the company net profit fell mainly due to the downward effect of the depth of capital markets, the sharp decline in investment income and changes in fair value of losses increased, as well as available for sale financial assets due to impairment provision. In addition, the impact of the appreciation of the renminbi, the company expanded the size of exchange rate losses to 10.1 billion yuan, an increase of 73.2 percent.

However, the investment market losses did not affect its main insurance industry continues to grow steadily. January to September, the company's business revenue increased to 248,595,000,000 yuan, up 56.7 percent. For the industry concerned about the issue of surrender of its Quarterly Bulletin show that the surrender rate of 3.76 percent, no surrender tide. Widespread in the industry believe that this is due to the Bank of China Life insurance dividends dangerous to rely on the main channels driven, rather than with the stock market is closely related to the vote even dangerous, and therefore not affected.

China Pacific Insurance stocks Canbei trip

The situation in the domestic investment situation led to the sudden emergence of insurance companies quarterly loss. China Pacific Insurance has announced the Quarterly Bulletin shows that companies in the third quarter of a loss of 1,636,000,000 yuan, 0.21 yuan per share loss. The company made a net profit of the first three quarters of a total of 3,876,000,000 yuan, down 32.58 percent year-on-year; the first three quarters of the basic earnings per share were 0.51 yuan, down 46.9 percent year-on-year.

Guangzhou Securities analyst Zhang Guangwei pointed out that Taibao losses due to the decline in investment income. Chong Canggu 10 of its Industrial and Commercial Bank (601,398, it shares), China Shenhua (601,088, it shares) have all experienced the depth of the adjustment, the investment income deficit. Reporters learned that the third quarter of China Pacific Insurance has made a significant adjustment to its Zhongcang Gu, China Shenhua, Panzhihua Steel Vanadium (000,629, it shares) to leave its ranks Chong Canggu 10. Industrial and Commercial Bank's shares this year have been in time of the 324,000,000 shares down to 8800 million shares. Jiancang stock at the same time, Taibao also increased the fund's allocation of the number.

Fortunately, because of its Pacific Insurance H-share listed did not postpone the QDII investment quota approved, the loan-to-time in this crisis, Taibao intact in the international market, which it later laid the foundation for growth. According to the Quarterly Bulletin shows that in the first three quarters, Taibao insurance business to achieve revenue 76,817,000,000 yuan, up 41.77 percent.

Ping An is expected to return to profitability next year

China Ping An's disclosure showed that three of the Quarterly Bulletin, 1 to September net profit was -7.05 billion (of which 7 to September net profit -78.07 billion), representing 315.9 percent decline in same period last year. Important reason for the decline is in the third quarter of Europe Fortis Group to invest in the stock of the impairment provision. As of the end of Sept., Fortis to invest its stock market value of the change in the loss 18,611,000,000 yuan in net assets to reflect, of which about 15.7 billion has been transferred to the profit report reflected, recognized as impairment loss.

Ping-sheng, spokesman for Serena said that the accounting treatment will be the company's profits this year have an impact on the company next year is expected to be restored to normal level of profitability.