Major lifers in China are dealing with increasing pressure over their asset allocation strategies and returns under a volatile capital market plus a new solvency regime domestically.
Finding the right sector with the right players is what it's all about when mitigating pricing risks - Ping An believes it's all about finding your niche.
Ping An Insurance’s net investment return slipped 0.3% to 3.8% in the first half, while another Chinese insurance giant China Life’s return was up 0.04% to 4.33% in the same period.
The government's plans to stimulate infrastructure could offer sustainable investment opportunities across many sub-sectors. That is drawing the eyes of Asian asset owners.
China’s second biggest insurer by AUM is aggressively building its overseas portfolio and is set to pour as much as another $16 billion into offshore investments in the next few years.
They are doing so in response to Asia-Pacific institutions rising appetite for assets such as hedge funds, private equity and real estate.