Insurance : CIIH "Tai Ping Life's October Premium Income Released&quo
Pls see attached the full PDF research report, below is a highlight:
Event:
CIIH’s life business subsidiary Tai Ping Life announced October premium income under PRC GAAP. Tai Ping Life recorded negative premium growth rate for two consecutive months due to a shrinking bancassurance channel and slumping sales of investment policies.
Our Comments:
Considering the inevitable slowdown in premium income growth and probable further decline in investment returns, we maintain a HOLD rating on CIIH.
Negative premium growth from slumping bancassurance and investment policy sales
Tai Ping Life’s premium income fell 19.0% YoY to Rmb1.129bn in October. January~October premium income totaled Rmb16.629bn, up 29.1% YoY, well below the January~September pace of 34.9% (Chart 1).
Shrinking bancassurance channel and slumping sales of investment policies explain the sharp decline in premium income growth. Since the CIRC started to supervise bancassurance more strictly, Tai Ping Life recorded negative premium growth for two consecutive months.
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发表于 2008-11-19 10:32
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