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Saturday, May 9, 2009

Country life: to make firm advancement of overseas fusions and acquisitions

By Professional editor working for gold ring castings.

Insurance businesses in 2008 the first annual report issued yesterday, income has shrunk substantially. March 26, China Life was held in Beijing in 2008 the functioning outcomes of the annual seminar, in Hong Kong accounting standards-based presentation report displayed that as at December 31, 2008, China Life's total buying into earnings of 30.24 billion yuan more than 2007 was down 61.4 percent; snare earnings of 21.28 billion yuan, comprising a 45.3 per hundred down turn in 2007. Solvency in 2007 from 525% to 310%.

Decline in snare earnings influenced by numerous components

Not ideal but for as early as the expected profitability of, China Life Chairman Yang Chao said in the conference, as a result of the first half of the country in 2008 for the South experienced a disaster and frozen rain and snow "5.12" Wen chun large earthquakes, and are rarely seen in the second half of the international financial crisis, making the operation of the development of China Life is facing unprecedented challenges. As of the end of 2008, China Life Insurance to pay a total of 11.916 million yuan compensation snowstorm, earthquake to pay a total of about 153 million claims; At the same time, adjustment of monetary and credit policy, exchange rates, changes in interest rates, the cost of factor prices brought about by changes to their varying degrees of impact.

As for the pointed down turn in solvency, vice leader of China Life Insurance Analysis Tak Liu sharp out that the deepness of capital markets directed to smaller buying into asset standards have fallen harshly identified and the fast development of the company's enterprise is the major cause for the down turn in solvency.

It was in addition ushered in in 2008 a immense shock to global capital markets, China Life Insurance is not financial endeavour, and sub-loan critical purpose is right away connected to the offshore bonds, equities and derivatives.

Modest financial endeavour in overseas

As can be seen from the report in 2008, China Life's investment portfolio has changed greatly, which claims investment accounts for 61.4% equity investment in 2007 from 23% to 8%. In the face of financial crisis, the country life in time to adjust the investment strategy. Germany, according to Liu, the 2008 increment of the main assets in fixed-income allocation of species, including infrastructure plans, such as claims, but also to honor some of the rights and interests of timely investment income category, but also cut interest rates before the increase of bank deposits and bond-type configuration. Nevertheless, the total investment income was only 3.4%, and in 2007 was as high as 10.24%.

Investment strategy for 2009, Liu said Germany would adhere to the fixed-income assets based investment strategy, at the same time will more closely supervise the management of the new investment channels open to find, such as investment in infrastructure, invest in unsecured bonds, real estate investment, private equity investment opportunities for the new configuration. "We will seek a better level of investment income to make up for in 2009 will face pressure on profits."

Tak Liu notified reporters that China Life would grab the new "Insurance Law" to expand buying into passages of protection businesses this beneficial opening, particularly for genuine land parcel buying into and infrastructure buying into is very welcome.

The report cited that in the overseas buying into, will dynamically impel ahead the sound of overseas amalgamations and acquisitions and equity investments. Prior to this, China Life Insurance has broadcast it was forsaking a tender for AIG assets in Asia, Yang Chao in response to a reporter's inquiry, said that overseas buying into is the buying into firm China Life Insurance main heading, stop the AIA (AIA), does not signify that overseas buying into is no longer China Life will do a good job in the household market on the cornerstone of an befitting buying into overseas. Has now built up many of buying into tasks, the ongoing study in depth. At the identical time, the recorded business China Life has yet to strategic investors, wanting to find symmetric Yang Chao worldwide strategic investors, but furthermore need time and careful.

Unexpected advance in premiums

Sharp fall contrasted to a earnings of China Life in 2008 premium development was unforeseen, particularly in the Bancassurance conduit growth.

The report shows that in 2008 the original insurance contract premiums of 295.579 billion yuan of income than the same period in 2007 grew 50.33%. "This growth rate greatly exceeded the budget of the Board of Directors issued last year, the goal is 8% -10%." Chao said such growth, mainly in the Banking and Insurance channels due to the entire market environment impact. He admitted that for such mixed results, because the majority of revenue is silver wholesale insurance to pay, not entirely in keeping with the development strategy of China Life position, but can not give up the channel.

Therefore, China Life has been targeted in 2009 in order to achieve a smooth scale of business growth, adjustment of business structure, to guard against operational risks to resolve business-oriented development strategy. Pay attention to the business to develop long-term period, risk-based business, as well as personal insurance policies mainly to pay the operational phase dispersion. According to the briefing, the company's insurance universal basic moratorium on the sale in 2009, and the cast basically did not even dangerous.

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