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Citi Transaction Services | Citi OpenInvestor
Insurers
China’s insurance companies have
enjoyed extremely rapid growth rates
over the past decade, so much so
that many have had to fnd ways to
increase their registered capital, as
premium growth moved them beyond
the threshold allowed by regulators
for normal operations. With massive
asset bases, the largest insurers have
taken to establishing dedicated asset
management subsidiaries to manage
the funds of the parent company
as well as those of other insurers
(for a very small fee). Traditionally,
insurers were important sources of
mandates for asset managers and the
establishment of asset management
subsidiaries has represented a major
shift in this setup. Nevertheless,
insurers are still major sources of
funds, especially for international
asset managers.
Insurers are also set to beneft from
the looming problems facing the
pension system. As the primary
alternative to the public pension
income for retirees, insurance
companies are set to more than
double the amount of assets they
have on hand over the coming decade.
Whether insurers are targeted as a
potential partner platform (the joint
venture approach described earlier),
or as a source of mandates, they stand
to assume an important role in China’s
fnancial landscape. Additionally,
with strong sales networks, many
insurance asset management
companies appear on the verge of
seeing extremely rapid increases in
their overall AUM.
If there is anything certain in the
world of analytical forecasting, it is
demographics, and the aging that
China’s population will undergo in the
next 20 years is as sure of a bet as
any. While growing assets from NCSSF
are part of this, insurers are onshore,
and this is where most of the action
will be.
AUM (RMB bn)
Establishment
Date
Registered
Capital
2007 2008 2009 2010
Anbang Asset Management May 2011
RMB300m
N/A
N/A
N/A
N/A
China Life Insurance Asset
Management Co., Ltd
November 2003 RMB3bn
1,030
1,140
1,300
1,550
China Reinsurance Asset
Management Co., Ltd.
February 2005 RMB200m
69
62
64
72
Huatai Asset Management
Co., Ltd
January 2005
RMB300m
36
N/A
40
42
New China Asset Management
Co., Ltd.
May 2006
RMB100m
100
N/A
180
200
Pacifc Asset Management
Co., Ltd.
June 2006
RMB500m
200
N/A
338
449
PICC Asset Management
Co., Ltd
July 2003
RMB800m
70
106
184
270
Ping An Asset Management
Co., Ltd
May 2005
RMB500m
470
452
570
700
SinoLife Asset Management 2011
N/A
N/A
N/A
N/A
N/A
Sun Life Everbright Asset
Management
N/A
RMB100m
N/A
N/A
N/A
N/A
Taikang Asset Management
Co., Ltd.
January 2006
RMB1bn
146
200
204
300
Taiping Asset Management
Co., Ltd
August 2006
RMB100m
40
54
70
100
Union Life AMC
N/A
RMB100m
N/A
N/A
N/A
N/A
Sources: Z-Ben Advisors, CIRC
Exhibit 11: Insurance Asset Management Companies, Establishment Date and Historic AUM (RMB bn)
A number of insurers have launched asset management subsidiaries to manage internal and external funds