FALL IN Q3 PROFIT AT CHINA PACIFIC AS RESERVES ARE STRENGTHENED

China Pacific Insurance reported a Q3 gain of CNY886m ($132.6m), down 64.4% on the same period last year, after increasing its reserves by 72% to CNY15.9bn. Chinese accounting rules have been changed this year, meaning that life assurers are using a 750-day average of three-year government bond yields to calculate the reserves that they need to hold for future liabilities. This average had fallen by about 15 basis points over the quarter. Net premiums were up 39% year on year to CNY28.4bn. For the first nine months, profit was up 20.8% to CNY4.91bn, on revenue of CNY108.1bn. Shanghai-based China Pacific Group is the mainland's third-largest composite, operating China Pacific Life, China Pacific Property, China Pacific Insurance (HK) and Pacific Asset Management Co.