China's insurance companies saw their net operating cash flow fall 65% to CNY633 billion (US$100 billion) last year, reported Reuters citing a source with knowledge of the data which was in a government memo.
The net operating cash flow of life insurers plunge by 47%, while property and casualty insurers saw their positions swing to negative, said the source, who was not authorised to speak to the media. The source declined to be identified.
There are concerns, in particular at the CIRC, of a liquidity crunch in the Chinese insurance industry as a consequence of the regulator's crackdown on the sale of cash-generating universal insurance products. To meet the high yields promised on such products, insurers had poured money into riskier assets.