Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

China’s Insurance Industry Faces Challenges, Regulator Says

Don't Miss Out —
Follow us on:

Jan. 7 (Bloomberg) -- China’s insurance industry faces greater challenges in 2012 and insurers should seek ways to boost their capital, said Xiang Junbo, chairman of the country’s Insurance Regulatory Commission.

Insurance companies faced difficult conditions last year when the annualized return on investment dropped to 3.6 percent, Xiang said in a statement today on the commission’s website.

“Affected by severe external economic and financial conditions as well as the sector’s own problems, the industry is experiencing a rapid increase in difficulties,” Xiang said.

The commission is encouraging companies to find ways to boost their capital with a focus on issuance of subordinated, convertible and hybrid bonds, Xiang said in a separate statement.

Xiang, who was appointed in October, said his agency supports plans for the People’s Insurance Company (Group) of China Ltd. to become a public company and will push forward reform of shareholding arrangements at the China Life Insurance Group Co.

To contact Bloomberg News staff for this story: Michael Wei in Shanghai at mwei13@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.