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.

Insurance: Insurance Agency to support the stable development of capital markets

Department head of the China Insurance Regulatory Commission recently said that the insurance sector to play the role of institutional investors, robust operation, to support the stable development of capital markets.

The person in charge in response to media-related interview that the U.S. financial crisis on China's financial markets have had a definite impact on the stability of economic, financial and capital markets, is an important task. Insurance funds have long-term investment characteristics of insurance agencies to adhere to long-term investment, the value of investments of institutional investors to play a role in the stability operation, to support the stable development of capital markets.

He said that the insurance sector according to market principles of operation, insurance regulators in accordance with the law in accordance with regulatory supervision. On the stability of the capital markets a variety of initiatives, the China Insurance Regulatory Commission has always adopted a positive attitude to support.

Cast even risk losing foreign sales share of high-risk serious shrinkage

The different product mix, so that each insurance company in the late autumn early winter season does not live the same day. Shanghai Bao Jianju according to data released yesterday, as of the end of Oct 2008, Shanghai's various foreign-funded insurance premium income of 8,426,000,000 yuan, 17.43 percent year-on-year decline in market share has shrunk to 16.19 percent. However, in sharp contrast with that of Shanghai's insurance market of the original premium income of 52,038,000,000 yuan, an increase of 12,704,000,000 yuan, an increase of 32.30 percent year-on-year; In addition, the Chinese-funded insurance premium income of 43,612,000,000 yuan, an increase of 49.72 percent, 83.81 percent market share.

This year, the Shanghai market in the foreign market share premiums accounted great changes have taken place. Among them, in Shanghai to expand the size of the overall insurance market, the Chinese-funded insurance companies operating under the strong growth in contrast, foreign insurance business in particular has shrunk big attention. In fact, the main reason for this situation is that prior to the company because of the size of capital, assets and other factors affect the matching period, with the exception of International Assurance Company outside the majority of the foreign life insurance companies are the main risk even vote, but with the speed of the capital market this year Decline, coupled with the emergence of the individual before the collective experience surrender, and other insurance companies involved in the incident, even for the sale of insurance is very difficult. Many Chinese-funded life insurance company will have long focused on the sale of dividends and traditional life insurance business, so business has been sustained growth.

Data show that in October, Shanghai's insurance market even for 1.64 billion yuan in June was even voted 323,000,000 yuan insurance premium income of 50. And before there had been bad faith on the phenomenon of insurance companies, inevitably there have been rapid decline in performance. Haikang to insurance, for example, the Shanghai Insurance Association released data show that in June this year, the company's premium income of 30,309,800 yuan, the premium income in October was 9,403,900 yuan, down 68.97 percent; market share dropped even more 50. The October monthly insurance premium silver only 6,116,200 yuan, the ring fell more than 80%, 94% year-on-year decline; and even voted in the risk business, the company in the Shanghai market's premium income was only 573,600 yuan Than in June has shrunk about 95.92 percent.