Insurance & Reinsurance 02 (Oct 14 - Dec 24)

Re: Insurance & Reinsurance 02 (Oct 14 - Dec 18)

Postby winston » Wed May 09, 2018 9:18 am

MOF: Domestic Insurers Paying for Insurance Protection Fund To Be Spared from Corporate Income Tax

Ministry of Finance (MOF) published a notice on the policy issue of tax on insurance protection fund.

Pursuant to which, domestic insurers in Mainland China which pay for insurance protection fund etc. in accordance with laws can be spared from corporate income tax, with effect from 1 January 2018 to 31 December 2020.

Source: AAStocks Financial News
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 18)

Postby winston » Sun Sep 02, 2018 8:13 am

Fearing further yuan weakness, mainland Chinese are buying insurance policies in Hong Kong once again

In first half of 2018, mainlanders spent HK$22.3 billion on insurance policies in the city

China’s yuan has tumbled by more than 6 per cent over the past three months.


Source: SCMP

https://www.scmp.com/business/banking-f ... are-buying
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 18)

Postby winston » Fri May 31, 2019 9:52 am

CICC: CN Insurance Tax Policy Adjustment Beyond Expectation; Sector NP to Rise 29%/14% in 2019/20E

China implemented an insurance policy during 4Q17 and 4Q18, raising the pre-tax deduction limit for life/ property insurers' charges and commissions to 18% (of the difference between premium incomes and claims).

CICC found the overall initiative better than expected, where overpaid taxes will be refunded to contribute to the 2019 profits.

The broker also expected 2019/20E net profits of the insurance sector to burgeon 29%/ 14% under tax reform.

Source: AAStocks Financial News
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 19)

Postby winston » Mon Aug 12, 2019 6:37 am

HK insurance sales to Mainlanders slumps

Source: SCMP

https://www.scmp.com/business/banking-f ... cy-holders
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 19)

Postby winston » Thu Sep 05, 2019 8:15 am

CICC: CN Life Insurance Growth Stress Persists; Auto Insurance Underwriting Starts Turning around

CICC issued a research report covering Mainland insurers, who have disclosed interim results with net profit shooting up 75%.

Excluding one-time tax refund, the growth was 39%.

The broker kept its target prices and grading for the Mainland insurers.

Life insurance growth stress would persist while automobile insurance underwriting business would start turning around for the Chinese insurers, CICC also projected.

Source: AAstocks.com
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 19)

Postby winston » Thu Sep 05, 2019 8:15 am

CICC: CN Life Insurance Growth Stress Persists; Auto Insurance Underwriting Starts Turning around

CICC issued a research report covering Mainland insurers, who have disclosed interim results with net profit shooting up 75%.

Excluding one-time tax refund, the growth was 39%.

The broker kept its target prices and grading for the Mainland insurers.

Life insurance growth stress would persist while automobile insurance underwriting business would start turning around for the Chinese insurers, CICC also projected.

Source: AAstocks.com
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 19)

Postby winston » Sun Sep 15, 2019 7:14 am

Hong Kong unrest rocks insurers’ sales as China buyers balk

HONG KONG: One of the biggest sources of demand for Hong Kong insurance products is drying up as the city’s summer of unrest deters Chinese buyers.

A group of about 80 agents working for one insurer saw their team’s sales to visitors from mainland China fall by almost 30% in August from the previous year, according to a senior member of the group.

Sales for September are on track for another tumble, the person said.

Two other agents in the city said their business had also fallen steeply after anti-government protests intensified. They all asked not to be named discussing private information.

Chinese customers have long flocked to Hong Kong for insurance sold by the likes of Prudential Plc and AIA Group Ltd., in part because the products offer an investment component and payouts in foreign currencies that are hard to come by on the mainland.

But many prospective Chinese customers are now avoiding the former British colony after protesters disrupted transport services and engaged in violent clashes with police. That’s pummeling insurance sales because industry rules require policyholders to be physically present in the city before a contract can be finalized.

In one sign of how big the issue has become for insurers, Prudential this month arranged mobile processing centers in conference rooms at a hotel near Hong Kong’s airport, allowing visitors to sign their contracts without venturing into the city, according to a company memo seen by Bloomberg News.

It’s unclear whether the move will alleviate customers’ concerns, given that the airport has also been rocked by protests in recent weeks.

Few expect the city’s turmoil to end any time soon, even after Hong Kong Chief Executive Carrie Lam last week gave into one of the protesters’ demands by scrapping the extradition bill that initially drew people onto the streets three months ago.

The risk for Hong Kong’s insurance industry is that an enduring period of unrest undermines the city’s reputation as a safe and reliable provider of financial services.

"If this drags out more than a couple of quarters, it would do serious damage, ” said Steven Lam, an analyst at Bloomberg Intelligence in Hong Kong.

A Prudential spokeswoman in Hong Kong confirmed the contents of the company’s memo, while declining to comment further. An AIA spokeswoman declined to comment.

The protests have thrown a wrench in what Hong Kong insurance agents -- some of whom quit careers in banking to join the lucrative industry in recent years -- had expected to be a strong 2019.

New premiums from policies sold to mainland visitors increased 18% to HK$26.3 billion ($3.35 billion) in the first six months of the year from the same period of 2018, accounting for 26% of total new premiums from individuals, according to Hong Kong’s Insurance Authority.

If not for the unrest, sales would have been expected to remain robust as the Chinese yuan slumped, a move that typically increases demand for foreign-currency policies.

Instead, Chinese buyers have stayed at home as protesters blocked roads and clashed with police in districts such as Tsim Sha Tsui and Causeway Bay, where many insurers operate customer-service centers catering to tourists.

The number of Chinese group tours to Hong Kong fell 90% in the first ten days of September versus the same period last year, following a 63% drop in August, according to data compiled by the Travel Industry Council of Hong Kong.

Prudential shares, which climbed 28% this year through early July in London, have since dropped about 16%. AIA has slumped about 10% from its July high in Hong Kong.

Assuming the current protests last six months, AIA’s value of new business may drop 5.6% in 2019, Michael Chang, an analyst at CGS-CIMB Securities Ltd., wrote in a note on Tuesday.

"Our recent visit to mainland China suggests strong belief among people living in mainland China that it is currently unsafe to visit HK, and they are delaying or canceling travel plans.” -

Source: Bloomberg

https://www.thestar.com.my/business/bus ... yMQWC9A.99
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 19)

Postby winston » Sat Nov 30, 2019 11:22 am

Hong Kong Insurance Sales to Mainland Chinese Clients Slide 18%

By Alfred Liu

Source: Bloomberg

AIA, which counts Hong Kong as its biggest market, said last month the value of new business in the city, a measure of future profitability of new policies, fell by double-digits in the third quarter.


https://www.bloomberg.com/news/articles ... s-slide-18
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 20)

Postby winston » Wed Dec 11, 2019 7:18 am

New premiums from mainland continue to dip

by Stella Zhai

Hong Kong's insurers expect to see a decline in new business value from mainland customers in the fourth quarter over the previous quarter, albeit a smaller one than the drop in the third quarter, said Clement Cheung Wan-ching, the chief executive of the Insurance Authority.

The NBV gauge slid 29 percent quarter-on-quarter during the three months ended September 30.

Cheung emphasized that there was still demand from mainland customers to invest in Hong Kong insurance products and expects the insurance business will return to normal if the social environment eases.

He predicts the full-year new office premiums will not change a lot due to strong growth during the first half this year.

The Insurance Authority is in discussion with mainland and Macau authorities to establish a cross-border supervision sandbox to test upcoming innovative insurance products, Cheung said in the Asian Insurance Forum.

The total insurance premiums in Guangdong and Shenzhen amounted to 466.3 billion yuan (HK$518.4 billion), making up 12.3 percent of China's total insurance premium, and that 40 percent of funds in Guangdong's insurance industry is from Hong Kong, said China Banking and Insurance Regulatory Commission's Chief Attorney Liu Fushou at the same event.

Chief Executive Carrie Lam Cheng Yuet-ngor, who had proposed tax reliefs to promote the development of marine insurance and the underwriting of specialty risks in Hong Kong last year, said the related proposals would be submitted to the legislative council next week.

Financial Secretary Paul Chan Mo-po meanwhile said the relief measures by the government can not solve all the problems in the SAR, adding that it needs to find solutions through community dialogue.

The Securities and Futures Commission is expected to see a drop of HK$120 million in total revenue as a result of waived license fees, said chairman Tim Lui Tim-leung after the forum, adding that due to the less-than-expected exchange income, it is likely to see a full-year deficit this year while forecasting a deeper deficit next year.

He expects the southbound trading in the Bond Connect to apply a real-name system before the end of this year, while a consultant will be hired early next year to implement investor identification in the Hong Kong stock market.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 1211&sid=2
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Re: Insurance & Reinsurance 02 (Oct 14 - Dec 20)

Postby winston » Thu Apr 02, 2020 8:09 am

HK: Life insurers face new business slump, S&P says

S&P Global Ratings predicts that Hong Kong's life insurers could face a slump in new business volumes this year, despite the regulator's recent measures to cushion an industry plunge, which could be the first contraction in a decade.

The sector's growth prospects are dented by ongoing travel restrictions, intensifying economic recession, and rising unemployment rates, said the rating agency.

S&P expects total premiums in the Hong Kong life insurance market to slide 5-10 percent year-on-year in 2020, with an estimate that new-business activity could drop over 30 percent and the renewal rate would be stable.

The rating agency estimates a roughly 70 percent decline in new business related to mainland Chinese visitors amid tighter border controls.

The sector's profitability is likely to weaken given the sharp rout in investment markets and a global recession, said S&P.

It forecasts the sector's return on assets will halve to just 0.7 percent in 2020 from historical levels. Life insurers are expected to strengthen reserve provisions because of the impact of flat yield curves, further contracting their capital buffers, said S&P.

Source: The Standard

https://www.thestandard.com.hk/breaking ... ,-S&P-says
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