China Life, a nation’s biggest life insurer that backs car-hailing hulk Uber Global, has vowed bigger investment into abroad markets, after stating an 67 per cent thrust in halt profit, that officials blamed on a low-interest rate sourroundings home and a flighty collateral market.
Zhao Linjun, a clamp president, pronounced a organisation has now allocated around US$7.6 billion onto offshore markets, especially focused on a skill sector, and stakes in unlisted companies.
“But a suit is too low, and we design to lift it and variegate a portfolio,” he told a press lecture on Friday morning, adding a association would work to lift a abroad investment ratio to 15 per cent, a top set by a China Insurance Regulatory Commission.
China Life has teamed adult with an many as 7 US-based private equity funds, to actively find opportunities in a US and Europe. It invested in Uber Global in 2015, though a interest and value was not disclosed.
Gross investment produce for a initial half forsaken to 4.36 per cent from 9.34 per cent in a same duration final year, especially due to waste from equity investment, compared with large gains in a same duration final year, Zhao said.
Its biggest skill investment has been dual bureau buildings in London and one in New York city, carrying reside contracts. The association is also meddlesome in serviced apartments complexes, while aim sectors logistics and sell operations, he added.
In June, it invested US$600 million into Didi Chuxing, China’s biggest automobile hailing app.
The association oversees an investment portfolio value 2.4 trillion yuan.
Zhao pronounced some-more than 70 per cent of that portfolio is on fixed-income products, while around 17 per cent went on equity investment in a initial half year.
“We will continue to extent a bearing to equity investment formed on a advantageous investment style… we do not see a A-share marketplace branch around a opening in a second half,” he added.
For a initial half of 2015, China Life saw a sum investment income tumble 49.1 per cent year on year to 50.84 billion yuan.
In a word business, net premiums warranted in a initial 6 months grew by 23.93 per cent to 284.24 billion yuan. The new business value of life word grew to 28.02 billion yuan, adult 50.35 per cent year on year.
The company’s boss Lin Dairen, said: “Some rising insurers with smaller distance are crunching into a marketplace shares of a aged large players by aggressively compelling a wealth-management character word products by bancassurance.”
“But China Life will hang to a plan and concentration on insurance focused products,” he added.