Fitch Ratings hosted a teleconference today, March 11 on the performance of China’s life and non-life insurance sectors. A replay of the conference is expected to be posted soon on the rating agency’s web site at: www.fitchratings.com.
In an announcement prior to the conference Fitch said: “After years of chasing market share, Fitch believes Chinese life insurers will shift towards ensuring product quality rather than quantity – a key theme for the sector in 2010, lending support to the sector’s credit profile.
Stanley Tsai, Director in Fitch’s Asia Pacific Insurance Ratings team, added: “Furthermore, the potential of new investment channels, interest rate increases, and an increased regulatory focus on solvency, will be positive for China’s life insurance sector in 2010.”
Fitch said that it is taking “a slightly more cautious view on China’s non-life insurance sector.” Joyce Huang, Associate Director in Fitch’s Asia Pacific Insurance Ratings team observed that “despite the robust growth momentum over the past few years, competition within the sector has led to fierce pricing. In addition, it is expected that the ongoing strong growth in low-margin businesses will continue to pressure non-life insurers’ profitability and capitalization in 2010.”
Source: Fitch Ratings
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