PING AN WILL SELL FOREIGN-CURRENCY LIFE COVER

China-based assurer Ping An will become the first Chinese asurrer to be allowed to sell life assurance denominated in foreign currencies, according to a statement on the web site of the State Administration of Foreign Exchange (SAFE). However, SAFE stated that several conditions would be attached to the permission. The policyholders must be either residents of China or “domestic non-individuals”. Both premiums received and benefits paid must be in the same currency, and foreign exchange premiums cannot be converted into the Chinese currency equivalent without permission from SAFE. By keeping the foreign exchange within the books of the life assurer, China will ease some of the burden of its ever-growing foreign exchange reserves, currently pushing $1tn.