Chinese insurers' investment returns, which account for a large share of their total earnings, are under pressure from declining interest rates and high stock market volatility in onshore markets, says Fitch Ratings.
CITIC Prudential Life (CPL), which is Prudential's 50-50 joint venture in mainland China, saw new business profit fall by 40% reflecting both lower volumes and adverse economic impact, Prudential says in a media release on its 2023 financial results.
Hong Kong-listed China Taiping Insurance Holdings Co (CTIH) increased its net profit after tax by 23.0% to HK$10.3bn ($1.3bn) in 2023, compared to the previous year.
Japan's recent adjustment of monetary policy is likely to have a moderately positive impact on economic capital and earnings for the country's life insurers in the next one to two years, says Fitch Ratings. The direction and scale of changes in Japanese bond yields will be key to the longer-term impact on their credit profiles.
Hong Kong-listed Sunshine Insurance Group Co has reported a lower net profit for 2023 despite achieving a higher turnover, as compared to 2022.
Cash-rich Chinese insurance companies, which started buying commercial real estate in the second half of last year after prices tumbled, are awaiting more buying opportunities, according to industry sources.
Australia has released its inaugural National Climate Risk Assessment report. According to the report water resources, critical infrastructure, health and agriculture are among the priority areas that are at significant risk from climate change.
The Company for Cooperative Insurance (Tawuniya), a Top Three insurer in Saudi Arabia, has formed a strategic partnership with Ejaro, a car rental platform company.
Several Chinese insurance companies late last week sent senior executives to the headquarters in Shenzhen of China Vanke, the country's second biggest property developer by sales, to conduct negotiations on extending Vanke's debt repayment period for at least a year.
Chinese insurers have exposure to the real estate sector in the form of bonds, loans, equities, and alternative assets (such as debt schemes), notes S& P Global Ratings (S&P).