INCREASE IN Q1 PREMIUMS FOR CHINA’S INSURERS

China’s insurers have enjoyed a near 23% increase in first quarter premiums according to figures released by the China Insurance Regulatory Commission (CIRC). A total of 196.45bn yuan was an improvement on the 160.15bn yuan raised in the first quarter of 2006. Property premiums rose by 38.8% to 51.49bn yuan while life premiums contributed 131.46bn yuan of the total, an increase of 19.3%. The overall increase of 22.7% represents an improvement on the 2006 increase of 14.4% and a 2005 increase of 13.95%. Total assets for China’s insurance industry totalled 2.24tn yuan by the end of March, up from the end of 2006 total of 1.97tn yuan. Almost half of these assets were in bonds (48.5%), with mutual funds accounting for 18.3%. Under current legislation domestic insurers can only invest 5% of their assets in the stock market, however, the authorities are considering raising this level and allowing firms to invest in more complex and high-quality securities and derivatives, according to a CIRC spokesperson.