ASIA FINANCIAL IMPACTED BY WRITE-OFFS

Hong Kong-based insurance and banking group Asia Financial Holdings has recorded a 23.1% drop in net profit to HK$184.6m because of lower investment returns and higher write-off charges. The company’s insurance arm posted net profit of HK$87.9m, down 23.3% year on year, because of falls in technical gains and investment returns. Asia Financial boss Bernard Chan said that Asia Financial was looking to invest in insurance ventures on the Chinese mainland. Last year it paid HK$96.7m for a 10% stake in an insurance joint venture controlled by China’s PICC Holding . The joint venture began operations in Beijing last December. Mr Chan observed that “it may be difficult for us to increase our stake in the joint venture, but we may be asked to contribute more funding to maintain our current shareholding as the business expands”.