SLOW PREMIUM GROWTH HITS PICC P&C SHARE PRICE

China’s largest non-life insurer PICC P&C saw its share price fall by more than 6% this morning after it reported premium income rising by 8.2% year on year, compared with a market average increase of 23%. PICC P&C’s market share slipped to 45.1% last year, from 51.5% in 2005. Net profit rose by 121.5% to 2.08bn yuan ($269.4m), from 940m yuan in 2005. But net premium earned was up by just 4.18%, mainly from the introduction last year of mandatory motor liability insurance. The company reported a 476m yuan fall in turnover in commercial property insurance. The technical gain fell to 604m yuan. The combined ratio crept up to 98.9% in 2006, compared with 97.2% the year before. Meanwhile, PICC P&C said that it was in talks to buy a 29% stake in sister company PICC Life for 841m yuan.