Country life: to make steady advancement of overseas mergers and acquisitions

Insurance financial gatherings in 2008 the first annual report liberated yesterday, profits has shrunk substantially. March 26, China Life was held in Beijing in 2008 the running effects of the annual group debate, in Hong Kong accounting standards-based recital report presented that as at December 31, 2008, China Life’s total financial endeavour wages of 30.24 billion yuan more than 2007 was down 61.4 percent; mesh yield of 21.28 billion yuan, exemplifying a 45.3 out of 100 descent in 2007. Solvency in 2007 from 525% to 310%.

Decline in snare earnings influenced by numerous components

Not faultless but for as early as the looked frontwards to profitability of, China Life Chairman Yang Chao said in the group debate, as a effect of the first half of the nation in 2008 for the South qualified a calamity and frigid precipitation and blizzard “5.12″ Wen chun large earthquakes, and are hardly ever observed in the second half of the global fiscal critical purpose, making the performance of the development of China Life is looking at unprecedented challenges. As of the end of 2008, China Life Insurance to pay a total of 11.916 million yuan recompense snowstorm, earthquake to pay a total of about 153 million claims; At the matching time, modification of monetary and loan guideline, exchange rates, modifications in interest rates, the cost of element costs fetched about by modifications to their varying academic achievement of impact.

As for the sharp decline in solvency, vice president of China Life Insurance Analysis Tak Liu pointed out that the depth of capital markets led to lower investment asset values have dropped sharply recognized and the rapid development of the company’s business is the main reason for the decline in solvency.

It was also introduced in 2008 a huge shock to international capital markets, China Life Insurance is not investment, and sub-loan crisis is directly related to the offshore bonds, equities and derivatives.

Modest buying into 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 scheme for 2009, Liu said Germany would adhere to the fixed-income assets founded buying into scheme, at the identical time will more nearly oversee the administration of the new buying into passages open to find, for example buying into in infrastructure, invest in unsecured bonds, genuine land parcel buying into, personal equity buying into possibilities for the new configuration. “We will search a better grade of buying into earnings to make up for in 2009 will face force on profits.”

Tak Liu advised reporters that China Life would snatch the new “Insurance Law” to enlarge financial endeavour paths of indemnity financial gatherings this beneficial possibility, principally for actual property area financial endeavour and infrastructure financial endeavour is very welcome.

The report referred that in the overseas financial endeavour, will energetically force frontwards the sound of overseas fusions and acquisitions and equity investments. Prior to this, China Life Insurance has advertised it was deserting a offer for AIG assets in Asia, Yang Chao in reply to a reporter’s query, said that overseas financial endeavour is the financial endeavour firm China Life Insurance main purpose, cease the AIA (AIA), does not intend that overseas financial endeavour is no longer China Life will do a good job in the in the household market on the foundation of an advantageous financial endeavour overseas. Has now amassed many of financial endeavour ventures, the ongoing examine in depth. At the matching time, the registered financial gathering China Life has yet to strategic investors, promising to find symmetric Yang Chao global strategic investors, but in addition demand time and careful.

Unexpected advance in premiums

Sharp drop compared to a profit of China Life in 2008 premium growth was unexpected, especially in the Bancassurance channel 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 aimed at in 2009 in alignment to accomplish a glossy scale of enterprise development, change of enterprise structure, to guard against operational dangers to determination business-oriented development strategy. Pay vigilance to the enterprise to evolve long-term time span, risk-based enterprise, as well as individual protection principles mostly to pay the operational stage dispersion. According to the briefing, the company’s protection universal rudimentary moratorium on the sale in 2009, and the cast fundamentally did not even dangerous.