Analyze the Major Domestic Insurance Corporations Operating in the Chinese Market.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c41345) has announced the addition of China Insurance Industry Report (Investment & Merger), 2006 to their offering. This report describes the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. of Chinas insurance industry and investment policies. It also analyzes the competitiveness of major domestic insurance corporations in full details. Moreover, it elaborates the investment of foreign insurance companies in China. Finally, it makes an analysis on risks for investments and acquisitions and presents some suggestions. 1. The Status Quo of Chinas Insurance Industry Chinas insurance market is still at the initial stage. It only accounts for a small proportion of the national economy. Since Chinas insurance industry was resumed in 1980, more and more insurance agencies, independent regulatory mechanism and organizations have gradually emerged in the market, and the service scope has also been greatly extended. By the end of 2005, there are 93 insurance corporations altogether in China, among which six were insurance groups and 82 were insurance companies (including 40 foreign insurance companies and 5 insurance asset management companies). The national premium income had reached RMB RMB Right Mouse Button RMB Regional Management Board (USACE) RMB Rolf Maier Bode (musician, band) RMB Ren Min Bi (currency of People's Republic of China) 492.734 billion, (RMB 34.1 billion was from foreign insurance companies, accounting for 6.9%), up 13.95% over the year of 2004, and 3.09 times of the amount of 2000, which had a CAGR CAGR See: Compound Annual Growth Rate of 25.29%. The fast growth of premium income stimulated the insurance asset to a rapid expansion. By the end of 2005, the total insurance asset had amounted to RMB 1522.594 billion, up by 27.03% over the year of 2004, and the total insurance capital had exceeded RMB 100 billion (three times of that in 2002). By the end of 2005, the insurance capital got a capital balance of RMB 1413.584 billion (5.53 times of that in 2000), up by 31.15% over the year of 2004. The insurance companies hold treasury bonds of RMB 358.83 billion, financial bonds of RMB 178.51 billion and corporate bonds of RMB 10.76 billion. Currently, there are 1.815 million staffs engaged in insurance, accounting for over 40% of the total number of staffs in financial enterprises in China. In 2005, 14 new insurance corporations were established in China, among which 13 ones were insurance companies and one was an insurance asset management company. Along with the rapid growth of economy, Chinas insurance industry and the concerned policies are also experiencing a fast development. The market access mechanism has been greatly improved and accordingly, more and more insurance companies have been established. In 2004, for instance, a number of insurance companies got the authorization for establishment, including the first agricultural insurance company, the first construction insurance company and the first pension insurance company. In 2005, eight Chinese insurance companies and four foreign insurance companies entered Chinese market, heating up the competition in the insurance market. The insurance companies have more rights over capital operation. They have obtained approval to handle corporate bonds, securities investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company and to invest directly in the stock market. More financing channels are available for the insurance company. For example, they have obtained permissions to invest in stimulant stimulant, any substance that causes an increase in activity in various parts of the nervous system or directly increases muscle activity. Cerebral, or psychic, stimulants act on the central nervous system and provide a temporary sense of alertness and well-being as bond or in convertible corporate bond. China Insurance Regulatory Commission is making great efforts to strengthen the management of risk resistance. However, we should also note that Chinas insurance industry is still at the initial stage. The unbalanced development of economy caused the difference in the development of insurance industry in different areas. For instance, in Guangdong and Shanghai, the insurance market is abundant in both demand and supply, which is far more prosperous than that of Central and Western China. Currently, the major problem is that the development of Chinas insurance industry does not accord to the development of the national economy, the society and the demand of Chinese people The following is a '''list of famous Chinese-speaking/writing people. Note in Chinese names, the family name is typically placed first (for example, the family name of "Xu Feng" is "Xu"). . 2.The Causes of Merger and Acquisitions On December 11th, 2004, China ended the transitional periods according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the commitments to WTO See World Trade Organization. , which indicated Chinas insurance industry had entered a new era because it would be completely opened to the world. But, from another angle, some problems still exist in Chinas insurance industry: Firstly, the reforms of some state-owned insurance companies are not sufficient. The product is in an unreasonable structure and lacks innovation mechanism, especially the life insurance such as medical care insurance and the insurance services in the countryside. Secondly, the risks in insurance industry can not be neglected. Some insurance companies are in trouble with the losses from old insurance contracts. The problem of unfaithful services in insurance companies is rather serious. Thirdly, the concentration of insurance company is deficient de·fi·cient adj. 1. Lacking an essential quality or element. 2. Inadequate in amount or degree; insufficient. deficient a state of being in deficit. . Compared with that of some developed countries, the scale of Chinese insurance companies is rather small, whose total asset is far less than that of some large international insurance companies. The world well-known insurance company -- AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group Co. owns much larger amount of asset than that of the whole Chinese insurance industry. Deficient concentration is one of major reasons why Chinese insurance companies are weak in the resistance to risks. The key to develop Chinas insurance industry is the implementation of merger and acquisitions. Firstly, merger and acquisitions can enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the prisoner was enlarged on giving bail. the scale of business, reduce costs, increase profits, and strengthen the capability of resisting risks and competitiveness. Secondly, merger and acquisitions can reduce competition and increase market share. Under the stress of intensive competition, merger and acquisitions is a good way to improve the structure of insurance products. Meanwhile, it is also a shortcut (1) In Windows, a shortcut is an icon that points to a program or data file. Shortcuts can be placed on the desktop or stored in other folders, and double clicking a shortcut is the same as double clicking the original file. to realize cross-sector operations. Thirdly, merger and acquisitions between insurance companies can develop new services. Fourthly Fourth´ly adv. 1. In the fourth place. Adv. 1. fourthly - in the fourth place; "fourthly, you must pay the rent on the first of the month" fourth , the mixed operation in financial industry accelerates the capital integration between banking, securities and insurance industries and enlarges their service coverage. Insurance companies can have the functions of banking and investment at the same time. For insurance company, purchasing other financial institutions can not only reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. the capital resource but also can optimize optimize - optimisation the resource configuration and absorb advantages from each other. Reorganization through merger and acquisitions is faster than internal investment adjustment and it can achieve economic synergies effect at the same time. Topics Covered 1. Analysis on the Status Quo of Chinas Insurance Industry 2. Analysis on the Investment Policies of Chinas Insurance Industry 3. Analysis on Competitive Force of Some Major Chinese Insurance Corporations 4. Analysis on the Investment of Foreign Insurance Companies in China 5 Analysis on Risks of Investments and Acquisitions of Chinas Insurance Industry 6 Suggestions on Investments and Acquisitions of Chinas Insurance Industry Companies Mentioned - PICC PICC Peripherally-inserted central catheter Critical care An IV catheter inserted in the superior vena cava for long-term infusion of bolus or continuous delivery of therapeutics or TPN–drugs, fluids, nutrients, chemotherapy. Cf Catheter. - AIU AIU American Intercontinental University AIU Allegheny Intermediate Unit (Homestead, PA) AIU Atlantic International University AIU Association of Indian Universities AIU Association Internationale des Universités Insurance Company - American International Assurance American International Assurance known as AIA (美國友邦保險) is a famous insurance company based in Hong Kong. It has offices in Asia-Pacific region including China, Australia, New Zealand, Japan, India, Malaysia, South Korea, Thailand and Co., Ltd. - Aviva-COFCO Life Insurance Co., Ltd. - China Life Insurance Company - China Pacific Insurance Co., Ltd. - CITIC- Prudential Life Insurance Co., Ltd. - Generali China Life Insurance Company Ltd. in China - ING Capital Life Insurance Company Ltd. - Manulife-Sinochem Insurance Co., Ltd. - New China Life Insurance Co., Ltd. - Pacific-Antai Life Insurance. Company Limited - Ping'an Insurance (Group) Company Of China, Ltd. - Sun Life Everbright Life Insurance Co., Ltd. in China - Tai Kang For the county in Henan, see Taikang. Tai Kang (Chinese: 太康) was the third sovereign of the legendary Xia Dynasty. He was the son of Qi. He loved to hunt and did not rule well. Tai Kang drowned in a lake. Life Insurance Co., Ltd. - Tai Ping Insurance Co., Ltd. - Tai Ping Life Insurance Co., Ltd. For more information visit http://www.researchandmarkets.com/reports/c41345 |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion