CHINA Pacific Insurance Co plans to acquire a controlling stake
in Anxin Agricultural Insurance Co and expand its agricultural
businesses to make the insurer's property unit more
CPIC Chairman Gao Guofu yesterday said the company will increase
its stake in Anxin to more than 51 percent from the current 34.34
percent after the plan is approved by the China Insurance
The move could increase Anxin's sales using CPIC's
network, and within the next two years make the agricultural
business the second-largest sector in the property unit.
The comment was made as CPIC reported a 60.4 percent net profit
increase for the group to 17.73 billion yuan (US$2.7 billion).
However, the combined ratio of its property unit was 99.8
percent, pointing to only marginal underwriting profit. The
profitability of CPIC's property unit had already rebounded
from a loss recorded in 2014, but Gao said the ratio is fragile and
the group will continue to focus on quality and enhance
"The government report this year highlighted the
development of agriculture, critical disease and disaster insurance
sectors as major tasks," Gao said. "We will increase
investment in these areas."
CPIC's annual report also revealed its gross investment
returns reached a five-year high of 7.3 percent despite domestic
stock market volatility in the second half.
The life insurance unit recorded a nearly 40 percent increase in
new business value, a major profit indicator.
Huatai Securities Co said CPIC's value-oriented reforms of
its life insurance unit have taken effect and boosted revenue, and
the fast development of its asset-management arm is helping improve
(Source: Shanghai Daily, By Feng Jianmin)
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