Insurer sees interest rates rather than growth curbs weighing on the sector
China Insurance International Holdings (CIIH) believes the mainland insurance sector will not be affected by government moves to moderate economic growth, but notes that higher interest rates may complicate the task of investing premium revenues.
The company said yesterday it had collected reinsurance premiums worth $700 million in the first quarter of this year, boosting its bottom line to $40 million.
Speaking after the company's annual general meeting yesterday, deputy chief executive Kenneth Ng said: 'In the reinsurance market, no news is good news.'
Executive director Sammy Lau said: 'Last year, we had the outbreak of Sars and typhoons in South Korea', which delivered a double blow to the company's reinsurance operations.
Mr Ng stressed that the quarterly numbers were not necessarily indicative of yearly reinsurance results, but they did signify good progress towards annual profit goals.
Another deputy chief executive, Dong Ming, said China's measures to cool down the economy had no obvious impact on the insurance sector, 'but we are closely monitoring the possible effects on the industry'.
