BRIEFING - ASIA INSURANCE - NOV 26, 2009

An executive briefing on insurance for Nov 26, 2009, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.
AUSTRALIAN HEALTH INSURER HCF LIFTS ANNUAL REVENUE

SYDNEY - Australia's third largest private health insurer HCF has played down speculation it could seek a stock exchange listing but says it has been bolstered by a big lift in membership numbers .

The fund, which merged with Manchester Unity last December, said it had defied tough economic conditions in the private health insurance market during the last financial year, with membership numbers growing by 20 per cent.

CHINA LIFE MAY SPIN OFF ITS HONG KONG SUBSIDIARY: REPORT

BEIJING - China Life Insurance Co. Ltd. (SEHK:2628, SSE:601628) may consider spinning off its Hong Kong subsidiary and enabling the Hong Kong branch to list in three years, the Hong Kong-based Oriental Daily quoted Liu Tingan, president of China Life's Hong Kong subsidiary, as saying on Wednesday.

Liu said that China Life has not yet decided upon the listing market for its Hong Kong subsidiary, China Life Insurance (Overseas) Co. Ltd. Considering that the parent has already listed in Hong Kong, investors may become confused if the subsidiary lists in Hong Kong.

FOREIGN INSURERS KEEN TO SET UP JVS WITH CHINESE MONEY MANAGERS

BEIJING - Aviva, the world's fifth-largest insurance group, has inked an agreement with Henan-based Central China Securities to set up a joint-venture asset management company, China Daily reported Thursday.

Aviva will hold a 49 per cent stake in the joint venture, while the remaining 51 per cent would be held by Central China Securities. The new company will apply for regulatory approval soon, said the newspaper, citing unnamed sources.

BANK-SOLD ANNUITIES BOOSTED PREMIUM INCOME AT JAPANESE INSURERS

TOKYO - Premium income at 13 Japanese major life insurers totaled 11.8 trillion yen (US$135 billion) for the six months ended Sept. 30, up 4.8 per cent from a year earlier.

Field sales personnel struggled, but insurance sales through bank branches increased 60 per cent, contributing to the higher premium income. Premium income rose at seven insurers and fell at the other six.

TOWER AUSTRALIA SHARES DROP 7 PCT AFTER EARNINGS RESULT

SYDNEY - Tower Australia Ltd (ASX:TAL) shares have slipped seven per cent to a three-week low on profit-taking after the life insurer's earnings result failed to push the stock beyond Tuesday's record high.

The stock fell 23 cents, or 7.01 per cent, to A$3.05 by 1108 AEDT, its lowest since November 5.

INSURER TOWER AUSTRALIA BOOKS 32 PCT DROP IN FULL YEAR PROFIT

SYDNEY - Tower Australia Ltd's (ASX:TAL) full year profit declined by 32 per cent as the life insurer's investments were hit by volatile markets and a higher amortisations charge.

Net profit fell to A$46.4 million for the 12 months to September 30, Sydney-based Tower said in a statement on Thursday.

CHINA PACIFIC INSURANCE RECEIVES APPROVAL FOR H-SHARES ISSUE

BEIJING - The China Pacific Insurance (Group) (SSE:601601) announced on Tuesday that it has got approval from the China Insurance Regulatory Commission (CIRC) to issue a maximum of 990 million overseas listed foreign investment shares.

Of the 990 million shares, new shares should be no more than 900 million, and a maximum of 90 million shares will be existing shares sold by shareholders with share-reduction responsibilities.

CHINA INSURERS UNSECURED DEBT PURCHASES TO REACH US$15 BLN

BEIJING - With four Chinese insurers approved to invest in unsecured debt, China's bond market is likely to attract 100 billion yuan (US$14.6 billion) of capital next year.

However, insurers bond purchases still depend on future Consumer Price Index (CPI) movements, said analysts.

DAI-ICHI MUTUAL BULLISH ON INVESTMENT IN TOWER AUSTRALIA

SYDNEY - Japan's third biggest life insurer says its investment in Tower Australia Ltd (ASX:TAL) will take advantage of the Australia's higher economic and population growth and potential expansion in the insurance market.

Dai-ichi Mutual Life Insurance Company, which bought its stake in August 2008 for A$376.3 million (US$345.78 million), also says Tower's own track record of steady profit growth, likely to again be demonstrated on Thursday when it releases annual results, made it an attractive investment.