Deposit and loan interest rates and lower interest exempt from the tax was announced, the industry believe that the rate cut is not an effective mitigation insurance policy of pressure on the cost of funds, and bond yields have dropped significantly, the insurance companies to reinvest the proceeds of the bond market and reducing their . "Lower tax rate" will lead to a future of the insurance industry profit margins were seriously squeezed, the risk of further decline in performance.
The cost of the policy is still severe pressure
Zhou Jin, an analyst in the company of the view that lower deposit and lending rates at the same time the abolition of interest tax, which is the first insurance company in terms of "asymmetric" rate cut. In the three-year time deposit rates remained at the adjusted 5.13 percent, while the five-year time deposit interest rates by 5.56 percent but rose to 5.58 percent, medium and long-term time deposit rate is actually far lower, so the cost of capital life insurance policies in force pressure Have not been effective mitigation.
For example, in August, has been in a high risk of the universal settlement began to cut interest rates. At present, published in September showed that universal insurance settlement rate, Ping An Life Insurance Personal Banking universal panacea and personal risk insurance settlement in a sharp decline in interest rates of 0.25 percentage points, Taikang universal insurance settlement rate from August's 5.50 percent down to 5.25 percent , Xinhua Life Insurance, remained at 5.20 percent. Nevertheless, the current universal insurance billing rates are still higher than bond yields, so omnipotent as insurance for insurance sales even after the boom of the most attractive insurance products, the profits of insurance companies to contribute little.
"Universal insurance settlement rate is currently close to the bottom, the company is unlikely in the current deposit interest rates continued to fall under the settlement rate, or premium income will be subject to greater impact." Director of an insurance company, said the use of funds. This means that insurance companies will continue to bear the heavy cost pressure on the policy financing.
However, the development of the insurance industry from the point of view, the cut would force insurance companies to adjust their business structures, the return of security features. Golden State Securities (600,109, it shares) Mao Wei, an analyst pointed out that this rate cut to make room for margin squeezing, Bank and Insurance sales channels for short-term financial products as a result of reliance on the "spread benefits," the biggest impact on the future focus on insurance sales To the protection of traditional products, because in addition to traditional insurance products to earn the "spread benefits", there are "bad death benefit" and "poor cost benefit."
Investment income poor profit margins squeezed
In the policy has not been cut costs and the decline in the background, the insurance investment income may have to cut interest rates fell and the insurance profit margins will be squeezed further.
Out of concern for the real economy, the stock market in the short term is difficult or good investment opportunities, access to investment income from insurance companies is unlikely. As early as in the first half of the insurance companies began to reduce the rights and interests of the ratio of investment to increase fixed-income asset allocation, insurance funds from the proceeds of the bond market access situation is also not optimistic.
Since August, the bond market Piaohong across the board, in mid-September to cut interest rates since the policy is to promote the bond market for some hot out of the market, the yield curve in the medium and long-term debt down in September by 40-60 basis points.
As the decline in bond yields, insurance companies, bond prices have been held by the "one rising in tandem." But the vote in the Securities analyst Xu insurance Shoude do not think this is a positive. According to his analysis, insurance companies, mainly from the bond allocation of assets and liabilities matching point of view, not to be trading opportunities, it has mainly taken the form of held-to-maturity, the bonds from the market price of Change. In addition, some bonds to be sold under the category of assets, but most of which are unlisted bonds, which can only be shared in accordance with the recorded value. As a result, the net assets of insurance companies will not cut interest rates and as a result of additional increases.
In addition, Zhou pointed out that each insurance company's assets for a long time period generally shorter than the balance for a long time period, the old debt due after the re-investment, as well as the additional premiums are faced with lower bond yields, bond investment Income has become more and more difficult to win. "Bond yields are expected to cut interest rates by supply and demand and the impact of the future may continue to decline, insurance companies, the future is difficult to obtain profits from the bond market."
"If the insurance rate of return on investment remains in the doldrums, the market's decline in the performance of insurance companies will be further exacerbated concerns." Director of the use of the above-mentioned insurance funds said.
