Safely give up the expansion of overseas financial crisis or by the insurance industry reshuffle

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."

U.S. city yet the crisis spread to China joint venture

U.S. city yet the crisis spread to China joint venture China and the United States, the Thai was worried Wa Qiangjiao

Following the U.S. banking sector fell one after another, the insurance industry is gradually becoming sub-loan crisis continued to spread the industry to the next.

AIG added, the number one U.S. market life insurance companies are also big American city in crisis, and its announcement that the current market volatility led to the market this year, the proceeds can not be predicted, the revocation of previously released 2008 annual profit expectations, the company in the third quarter Operating profit will be 48% of the Pujiang, at the same time that it would open the sale of 75,000,000 shares 2,000,000,000 U.S. dollars in order to raise funds. At the same time, the United States also announced that the city will be laid off in the beginning of this month, according to informed sources, the city plans to the United States this year, put forward by the "operational excellence" in part.

The United States following metropolis will become bogged down in another AIG after the financial crisis of the insurance giant? For domestic investors, the U.S. metropolis in China-US joint venture life insurance business metropolis and the city whether or not Thailand would be involved? U.S. city

AIG mistakes or mistakes?

Actual operating results and had expected that the 2008 annual profit in conflict, the United States Metropolitan Insurance revoked the expected profit. Recently, in the United States Securities and Exchange Commission (SEC) filings, he said: As of September 30, the securities on a regular basis pre-tax unrealized loss is estimated to be about the total amount of 17,000,000,000 U.S. dollars. At the same time, MetLife also said the United States, will be held on October 29 announced its detailed performance reports.

China and the United States who metropolis on the 14th reporter to provide the latest "risk factors" Notice: To cope with the financial crisis, city insurance companies to make public the sale of 7,500 shares of the decision, and the sale of stock to raise capital.

"Because of the current capital and credit markets' extreme volatility ', make some issuers may be obtained by liquidity and credit capacity to face downward pressure." MetLife said in the report, "At present, the Government can not jump to the most recent The measure would have financial markets what kind of impact. "

Reporter's access to information, as of September 30, the United States metropolis quarter income from continuing operations is expected to be from 1,005,000,000 to 1,150,000,000 US dollars range, per diluted common share for 1.38 to 1.58 U.S. dollars, lower than the previous data analyst Forecast of 1,380,000,000 U.S. dollars. At the same time, the Metropolitan in the third quarter operating profit decline in well below analyst forecasts of 1.48 U.S. dollars per share, compared to the same period last year, has dropped 48 percent, the United States said the city fell due to "reduce the return on investment."

The number of investors may be able to give some reference, however, insisted that the city's own balance sheet remains strong. As of the second quarter, the company has more than 4,000,000,000 U.S. dollars of surplus capital. Deutsche Bank recently released a research report estimated that the city insurance AIG, Lehman Brothers, Washington Mutual Bank, as well as Freddie Mac, Fannie Mae's investment in these cumulative 1,000,000,000 U.S. dollars. At the same time, the report on the city's insurance fund liquidity expressed satisfaction: "the company's strong liquidity, with 1,750,000,000 U.S. dollars of liquidity assets."

Luen Thai as the Metropolitan Life and Metropolitan Life Insurance China and the United States of foreign shareholders, the co-shareholders are China's Shanghai Alliance Investment Company and the Capital Airport Group.

Orient Securities analyst Wang Xiaogang insurance industry, in a recent media interview that: "From the existing data, the city is better than the profitability of AIG, but the prospects are still difficult to predict, to wait out all the data revealed only after the development of the situation Situation in the city's two domestic insurance companies can not say tide level, because a lot of data is not clear. "

"But even if the U.S. city that may be encountered crisis, the worst-case scenario is nothing more than to sell in the domestic part of the joint venture's assets. Because the United States city in China with AIG and friends of the situation has differences with the former shareholders of the domestic holders 50% of the shares, while the latter is a wholly-owned subsidiary. "15, a Chinese-funded high-risk investment in an interview with reporters that the case," therefore, we must not blind panic, for China and the United States as well as the city Thai metropolis, today announced the truth should be objective and to avoid investor panic caused as a result of excessive surrender. "

Wa Qiangjiao opponents fear the negative effects of exaggerated

U.S. layoffs a city, then the market for insurance stocks have doubts about this, the two China-based joint venture China and the United States and the metropolitan city and Thailand all have foreign claims, "there is no head of the United States received on the The notice of any layoffs, and the parent company of the layoffs are not related to China. "

City in the United States has issued a notice, the relevant departments in China and the United States city on the 14th an interview with reporters, said: "the parent company's financial predicament will be its own business talking about the outside world is not as serious and current state of business Well, at the same time, the capital city and the airport is a joint venture, AIG and the situation differently. "

Luen Thai city of the relevant parties to a recent media interview that the U.S. city of initiatives to raise funds does not affect domestic companies, as a Sino-US joint venture and an independent financial accounting. At present the normal operation of the company and shareholders from the Chinese side business to the size of the operating expenses of support, so that now the security situation.

Prior to that, Luen Thai has an open city, said: "At present, the company will not lay off hastily, but in the search for better life insurance professionals to join."

"After the advent of the financial crisis, the insurance company has its own existence?" Worried about the increasing number of policyholders will, AIG and the problems encountered by large-scale surrender, the current policy holders are most concerned about is, bought his own U.S. Metropolitan joint venture in China's insurance policy, it will be affected.

In this regard, the above-mentioned an interview said the Sino-US city, a joint venture with the parent company of all independent accounts, even if the performance of the parent company emerging downturn does not affect the normal operation of the joint venture, the Chinese mainland will not be affected policy holders.

"Insurance Regulatory Commission on the insurance funds are very tight control of the joint venture is committed to monitor the red line will not rashly, the funds will certainly not be a problem." Jiang Xing in China and the United States city staff view, the so-called "AIG first Second, "the haze, it is clear that the financial turmoil of the outside world over a response.

"The current city must face is that, in addition to policyholders, as well as concerns about the outside world may lead to speculation that there is the fear of surrender, to maintain the stability of the company is also important because of how the resources on hand to keep the backbone of the business are also very Important because not rule out the rival Wa Qiangjiao opportunity. "Above a certain level of risk capital investment in the Department who told reporters that" However, an objective that China and the United States and the metropolitan city from Thailand to enter the Chinese market has been operating a still It is true that business development is also more stable growth. "

China Insurance Regulatory Commission statistics show that in 2008 January-August, the two companies were 1,092,000,000 yuan and 860,000,000 yuan of premium income came in a joint venture insurance companies in China's 11th and 12th, in the middle .