China Pacific Life Insurance Growth Facing Uncertainties

Chinese leading insurance firm China Pacific Insurance (Group) Co., Ltd. (SHSE: 601601) will face a new round of challenges in sales channels and products of life insurance business, said its chairman Gao Guofu at the shareholders' meeting held on May 18, 2011.

The chairman stated that the group's life insurance business may not achieve the expected 15% growth within the following three years and will face certain uncertainties.

China Pacific Insurance President and Executive Director Huo Lianhong noted that the targeted comprehensive cost ratio of the group's property insurance business is about 95%, compared with 93.7% in 2010 that is the highest level in the past three years.

In past several years, the listed insurance firm's life insurance has developed well, witnessing an annual growth of above 20% in new business value in the past three years. The group witnessed an average compound growth of 26% in new business in the past three years.