Date
27 May 2017
Li Jinfu says claims relating to the Tianjin explosion are unlikely to have a significant impact on the insurer's aggregate cost ratio. Photo: HKEJ
Li Jinfu says claims relating to the Tianjin explosion are unlikely to have a significant impact on the insurer's aggregate cost ratio. Photo: HKEJ

China Taiping Insurance slashes equity holding amid stock rout

China Taiping Insurance Holdings Co. Ltd. (00966.HK) has been offloading stocks and funds since the end of June amid a market slump.

Equity investment in the insurer’s portfolio was 6.6 percent at the end of June, down from 10 percent previously, according to the Hong Kong Journal which cited chief financial officer Li Tao.

The company posted a net profit of HK$5.86 billion (US$756 million) in the first half, triple that of the previous year.

It faces up to 90 million yuan in claims relating to the Aug. 12 explosion at a chemical warehouse complex in Tianjin.

The amount includes 70 million yuan in property and casualty insurance compensation and another 10 million yuan of reinsurance. 

However, the payouts are unlikely to have a significant impact on its aggregate cost ratio, Li Jinfu, vice chairman and general manager of Taiping Insurance, said.

The company is planning to spin off its reinsurance business into a separate unit.

It is awaiting approval from the China Insurance Regulatory Commission.

[Chinese version中文版]

– Contact us at [email protected]

VW/JP/RA

Hong Kong Economic Journal

EJI Weekly Newsletter

Please click here to unsubscribe