China Insurance Return in Investment Hit 2.1% in H1

Wu Dingfu, chairman of the China Insurance Regulatory Commission (CIRC) disclosed at the meeting on July 15 that average return in investment of China insurance sector achieved 2.1% in the first half of 2011.

Wu said that insurance capital outstanding was CNY 5.3 trillion in the first half, income from investment CNY 103.11 billion.

He claimed that premium reached CNY 805.66 billion in the same period, growing 13% from previous year, of which premium from property insurances was CNY 235.96 billion, 16.9% higher than last year. 34 property insurance companies realized underwriting profitability.

The life insurance premium hit CNY 569.7 billion, of which bank and post agent businesses significantly slowed down, growing only 0.23%, while draw bonus the insurance weighed 90.2% of the total.

The chairman also disclosed that the CIRC would improve related investment policies and modify bond investment regulations to support reasonable allocation of domestic bonds and overseas good assets by insurance funds. He added that the agency would issue regulations on insurance margin trading and derivative products.