China’s new regulation on insurance companies’ financial product investments could add pressure to industry in the short term, while plugging loopholes and bringing out hidden risk factors.
Major lifers in China are dealing with increasing pressure over their asset allocation strategies and returns under a volatile capital market plus a new solvency regime domestically.
Insurers such as Manulife, Prudential, and Allianz believe the influx of a large pool of assets can drive the long-term vitality of China's capital market.
China Life Insurance appoints new president; Solmaz Altin joins Prudential from Allianz; Temasek director appointed chair of ESG committee at SVCA; Manulife IM Asia CIO for real estate to depart in June with Jessie Liu appointed as his replacement; JP Morgan AM hires from AllianceBernstein; Cbus appoints head of retirement and product governance; and more
While insurers have gravitated towards alternative assets in search of yield and diversification, China Life increased allocation to government bonds.
Even China is concerned about its Russia exposure; AIA puts on its acquisition hat; SFC fines HSBC Securities Brokers (Asia) HK$6.3 million; HKMA issues bonds; Canada Pension Plan Investment Board (CPPIB) invests $350 million into Indian commercial space; and more ...
The chair of China Life Insurance is under investigation for "serious violations of discipline and law"; Korea's National Pension Service was found to have been passive with efforts to mitigate climate change; Singapore's NTUC Income plans to spin off insurance business to new company; Temasek leads $300 million funding round alongside Qatar's SWF for Carsome Group; and more.
The value of Chinese stocks listed in the US fell by a trillion dollars after Didi’s delisting news, signaling a bearish sentiment, but some investors eye opportunities.
Asset owners are spoiled for choice when it comes to private credit assets, but keeping and finding talents as well as choosing the right managers remains a challenge.
Ping An Insurance’s net investment return slipped 0.3% to 3.8% in the first half, while another Chinese insurance giant China Life’s return was up 0.04% to 4.33% in the same period.
The largest life insurer in the country is continuing to make a longer-term push into bonds and some equities, but remains concerned about the potential for corporate credit defaults.
Picking up an Institutional Excellence Award for its home market, China Life has been quickest to evaluate regulatory changes and partner best expertise in venturing overseas.