Financial crisis has come to Chinese insurers
Chinese insurance industry, which volume makes $440 billion, faces great problems now.
And even intervention of authorities does not rescue Chinese insurers and in terms of world financial crisis, growth of profit of these companies is not expected.
One of the largest insurance companies of China Ping An Insurance Co has lost $2,3 billion on investments in shares of Belgium-Netherlands financial group Fortis NV.
Shares of insurance company China Life have already decreased on 50 %, and Ping An’s shares have lost more than two thirds of cost for the same period. Moreover, Ping An has informed on losses on results of III quarter at the rate of $1,15 billion, that is connected with the western operations of the company.
Since October 2007, Shanghai Composite index has lost more than 70 %, and the majority of the insurance companies incur losses because of problems in the market. And it is obvious that in the nearest years the profit, which the companies receive from the share markets, will remain low.