China Pacific Profits Up for 1H 2011

Posted on Aug 29, 2011 by Sergio Ulloa (G+)

China's insurance boom is set to continue in the wake of a stellar first half of the year by the nation's third largest life insurer; China Pacific Insurance (Group) Co (CPIC). China Pacific released a report on Monday which revealed that the insurers total net profits for the first half of 2011 had risen by 44.7 percent to RMB 5.82 billion (US$ 911.04 million), while sales revenues grew by 14.2 percent to RMB 86.88 billion (US$ 13.6 billion). Despite the recent gains made by China Pacific, the company's shares on the Hong Kong Stock Exchange fell by 1.9 percent on Monday, to HK$ 28.15 (US$ 3.61) per share. China Pacific Insurance, a Shanghai based insurance provider, realized the highest first half profits of all three major Chinese based insurance providers, including China Ping An and China Life, in 2011. The biggest gains for China Pacific were made in the life insurance and property insurance markets, with total life insurance premiums for the period in question yielding RMB 2.79 billion (US$ 437 million) in net profits, a 28.5 percent year-on-year gain. The company's property insurance offerings yielded net profits in the region of RMB 2.34 billion (US$ 366 million), a 54 percent gain over the previous year. China Pacific Insurance's recent results mirrors the success achieved by two other major Chinese insurance industry players; China Life and China Ping An. The high levels of growth seen by all three of these companies since the start of 2011 fully reveals a maturing market, and sets the stage for even more profits in the near term future. However, the business potential of the Chinese insurance market has attracted foreign notice, and increased activity by foreign insurers has become increasingly evident in the past few months. Cigna, a well regarded American Health Insurance company, recently revealed plans to launch a new, targeted China health insurance plan in conjunction with its local partner, CMC. The Cigna CMC health insurance product, named The Jade Plan, is a product specifically designed for the high end mainland market. While competition may be growing inside China's insurance market, China Pacific is well positioned to experience even higher levels of growth moving forwards. At the end of June 2011, CPIC had RMB 490.51 billion (US$ 76.8 billion) in assets under management, up by 12.6 percent from 2010. Insurance Companies Mentioned China Pacific Insurance Group China Pacific Insurance (Group) Co., Ltd. (CPIC) is a insurance company providing, through its subsidiaries, a range of life and property and insurance services and pension products to individual and corporate customers throughout the country. CPIC was founded on May 13, 1991, and is headquartered in Shanghai. The company was listed in Shanghai Stock Exchange on Dec. 25, 2007, with the stock code of 601601 and the stock name of "China Pacific". The Company was listed in the Stock Exchange of Hong Kong Limited on Dec. 23, 2009, with the stock code "02601" and the stock name of "CPIC". China Ping An Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company's subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others. CIGNA CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation's operating subsidiaries are committed to providing medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, for 46 million people throughout the United States and in other communities around the world.