RSS Feed
Ping An Insurance (Group) Company of China, Ltd. (601318.SH; 2318.HK), the second biggest Chinese insurance group in terms of market share and premiums, has launched a single-premium participating insurance product this month.
Last month, the settlement rate of universal insurance of Ping An was merely 4.00%, lower than the five-year deposit rate after the central bank raised the benchmark interest rate. It is easier for the Shenzhen-based insurer to sell the participating insurance products instead.
On the other hand, the group is understood to make a turnaround from the negative growth in new personal insurance premiums during recent two months. During the first two months of the year, Ping An realized the new personal insurance premiums of CNY 9.8 billion, down 19% year on year; and bancassurance premiums of the company totaled CNY 5.4 billion, down 24%.
However, more capital is needed for the single-premium insurance products. Ping An’s announcement dated March 15, 2011 said that the insurance giant is to sell HKD 19.45 billion worth of the Hong Kong dollar-denominated H-shares via private share placement, so as to raise the solvency and sustain the business operation.
Premium revenues of the country’s life insurance sector reached CNY 122.4 billion in January 2011, a year-on-year increase of 2.88%. As usual, China life insurance Co. and Ping An Life Insurance Co. remained as the first and second largest life insurers.
Shanghai-based China Pacific Life Insurance Co. (CPIC Life), the life insurance arm of China Pacific Insurance (Group) Co., gained the life insurance premiums of CNY 11.7 billion in the month, with the market share rising from 8.66% to 9.55%, thus ranking No.3 among those life insurance companies in the country.
With premiums of CNY 11.1 billion and the market share of 9.05%, Beijing-based New China Life Insurance Co. followed CPIC Life as the No.4; and PICC Life Insurance Limited took the place of Taikang Life Insurance to take the fifth place among all of the China’s Mainland-based life insurers. In January, PICC Life reaped the premiums of CNY 9.4 billion and realized the market share of 7.7%.
As for those foreign life insurers doing business in China, they achieved the premium revenues of CNY 3.7 billion this January, down CNY 1.5 billion year on year; and they saw the combined market share decrease to merely 3%. Currently, there are 24 foreign life insurers doing business in China. Among them, only AIA China and Huatai Life Insurance Co. squeezed into the top 20 life insurers in January
If you enjoyed this post, make sure you subscribe to my RSS feed!
Posted in 
