Asset Management Expansion &Nbsp; When Will Insurance Investment Become Active?

Secondary life insurance asset management In 2010, the company was approved to build and break the "9+1" pattern that lasted for 4 years. In May 24, 2011, Ampang asset was officially approved after its approval in April.

At present, Sunshine Insurance The 10 insurance companies, Minsheng life insurance and union life insurance company, have joined the ranks of the applicants for the establishment of professional Asset Management Co, waiting in line with the approval opinions of the regulatory authorities.

In April of this year, the CIRC issued a notice to adjust the relevant provisions of the Interim Provisions on insurance Asset Management Co Management (hereinafter referred to as the Interim Provisions) in 2004: appropriately adjusting the conditions for setting up insurance Asset Management Co, expanding the operation scope of insurance Asset Management Co, and allowing insurance Asset Management Co to set up subsidiaries to engage in special asset management businesses.

According to the insiders, a series of policy signals indicate that the asset management business of the insurance industry will enter a new round of acceleration. This time, it will promote the transformation of the insurance fund utilization mode from "account" to "product", from passive investment to active investment, and boost the large-scale development of insurance Asset Management Co so as to become an important source of profit for insurance companies.

Threshold lowered: 8 years to 5 years.

According to the CIRC's 2004 Interim Provisions The adjustment of the insurance company's newly established Asset Management Co has been moderately relaxed. It has been adjusted from "operating insurance business for more than 8 years" to "operating insurance business for more than 5 years".

Before the promulgation of the Interim Provisions in April 2004, PICC and China Life Insurance have set up Asset Management Co in succession. In January 2005, Huatai Asset Management Co was allowed to open business and became the first mainland insurance Asset Management Co to be allowed to open after the implementation of the Interim Provisions. In February and June of the same year, China's re assets and Ping An assets were allowed to open. After October 2005, 4 Insurance Asset Management Co, Taikang assets, Xinhua assets, Pacific (601099, stock bar) assets and Taiping assets were allowed to be established and formally opened.

The relaxation of operating years means that more and more small and medium-sized insurance companies can apply for the establishment of Asset Management Co without the limitation of operating time. But at the same time, the adjustment raised the requirements of "promoters" in terms of solvency, total assets and registered capital.

After adjustment, the promoter's solvency adequacy rate is "no less than 150%", and the total assets are adjusted from "original not less than 5 billion yuan" to "not less than 10 billion yuan RMB". The total assets of the insurance group (holding company) are adjusted from original "no less than 10 billion yuan RMB" to "no less than 15 billion yuan RMB", and the requirement of "net assets not less than 1 billion yuan RMB" is removed, and the minimum registered capital of the insurance Asset Management Co is increased from 30 million yuan to 100 million yuan.

"This shows that on the one hand, regulators are increasing the opportunities for insurance companies to set up professional Asset Management Co. On the one hand, they have intensified the risk control efforts, especially in terms of solvency adequacy ratio, setting up a threshold for adequate class II standards." The head of an insurance Asset Management Co told reporters that for the insurance companies wishing to set up Asset Management Co, the solvency adequacy ratio is a more stringent and uncertain assessment condition than business life. With the development of business, institutional layout and product line adjustment, the data will be changing at any time.

Data show that life insurance has been approved to build life assets, the solvency adequacy ratio was 153% in 2009, and 200% in 2010, all higher than the requirements of the CIRC. The joint promoter of Ampang assets, Ampang life insurance and Ampang life, is all above this requirement.

Historical data show that as of the end of 9 2010, 9 Insurance Asset Management Co managed assets of over 80% of the whole industry, and more than 70% of the insurance companies set up independent asset management departments, of which more than 10 insurance companies adopted the asset management center mode. Today, the insurance Asset Management Co team is expanding again, and new members are about to build their own asset management platform to further expand investment channels.

Scope broadening: third party business to be catalyzed

According to the approval, Ampang assets can be entrusted to manage the RMB and foreign currency funds entrusted by the principal, manage the use of its own Renminbi and foreign currency funds, carry out the business of insurance asset management, and other businesses approved by the CIRC and other departments approved by the State Council.

By the end of 9 in 2010, nearly 90 insurance companies had established trusteeship mechanisms, and the scale of insurance assets has exceeded 2 trillion yuan. The types of trusteeship assets have expanded from stocks to bonds, deposits, infrastructure and equity. Among them, 80 insurance companies have been entrusted to invest in stocks, with assets of 271 billion 150 million yuan.

Actively developing the entrusted business of small and medium-sized insurance companies has always been an important task for the insurance Asset Management Co. According to the Interim Measures for the custody of insurance assets, a newly established insurance company must establish a system of asset trusteeship before opening business, so as to enhance the transparency of the operation of insurance assets.

"At present, the insurance Asset Management Co are mainly entrusted with the management of insurance funds passively. The third party assets management is very small, and the contribution to the insurance company's profits is very low." CITIC Securities (600030, stock bar) British quasi actuary Pan Hongwen, for example, China Life Asset Management Co is currently the largest Asset Management Co in China, but its net profit in 2010 was only 493 million yuan, accounting for only 1.5% of China Life's net profit of 33 billion 600 million yuan.

According to the latest adjustment made by the regulatory authorities to the Interim Provisions, the insurance Asset Management Co should actively expand the other third party trustee asset management business while realizing the diversification of the entrusted assets and service objects, and improve the level of marketization.

"This is one of the biggest changes in the regulation. Even if the insurance Asset Management Co is mainly funded by passive trustee insurance funds and extended to the third party asset management business, allowing the management of non insurance third party assets in the medium to long term, this adjustment is expected to make the third party asset management business of insurance Asset Management Co grow at a high speed, and the contribution of asset management business to profits will increase significantly." According to Pan Hongwen, according to foreign experience, the rapid development of asset management business will make it an important source of insurance company's profit contribution.

However, it seems that in addition to the third party asset management business, the ping an assets, Taikang assets and Taiping assets only carry out the third party asset management business, while the assets of national life and Taibao assets rarely expand the third party asset management business. The major Asset Management Co basically manage their own assets.

Such as the national life group, each insurance subsidiary has an independent asset management department. Its assets are located in the internal management institutions and rarely expand the third party business. Taking Tai Bao group as an example, Tai Bao assets are also located within the group's centralized capital utilization platform, and the group assets are not entrusted to the outside world. At the same time, Tai Bao assets are not encouraged to carry out the third party entrusted business.

Product innovation: "account" turn to "product"

"Allowing the management of non insurance third party assets and setting up insurance asset management products is a major breakthrough in the scope of the insurance Asset Management Co's operation." Pan Hongwen believes that from the perspective of foreign experience, domestic insurance Asset Management Co will soon face major transformation and develop towards the direction of big Asset Management Co.

Obviously, to realize the diversification of entrusted assets and service objects depends not only on policy support and strategy adjustment, but also on the promotion of Asset Management Co's investment ability and the attractiveness of asset management products.

It is a clear keynote for the supervision conference of insurance funds utilization in 2010 to promote the transformation of insurance fund utilization mode from "account" to "product".

"Capital utilization is an important driving force for insurance innovation. It can not only support product innovation by providing a stable and diversified investment portfolio, but also promote the development of insurance services from risk management to comprehensive wealth management through the development of integration with financial markets, and achieve service innovation." Wu Dingfu, chairman of the China Insurance Regulatory Commission, stressed that the use of insurance funds is closely related to the design and sales of insurance products.

According to the ideal state, the insurance Asset Management Co can make full use of the policy advantages of many investment channels and strong business advantages of professional teams, and be familiar with the advantages of financial market, increase the intensity of product innovation, support and take an active part in the development and design of insurance products, and help the product development department to provide more marketable products to the market.

But all along, the insurance industry has a phenomenon of "product development and asset management out of joint" phenomenon, that is, the asset management department is not familiar with the development and sale of insurance products, and the product development department also does not understand the actual investment situation, which undoubtedly increases the risk of asset liability mismatch.

Of course, the pace of product innovation has not stopped. As of the end of 9 2010, 7 Asset Management Co launched 23 infrastructure debt investment plans, 6 equity investment plans and 8 asset management products, with a total of 95 billion 450 million yuan.

Many interviewees believe that only through product innovation can we promote the marketization process of asset management, from passive investment to active investment, from investors to product issuers, and enhance market competitiveness.

According to the new policy adjustment, the insurance Asset Management Co will be allowed to set up subsidiaries to engage in special asset management business in the future. In the future, it is expected to set up subsidiaries to invest in real estate or non listed equity.

It is reported that in accordance with the assumption of the national life group, it is proposed to create an alternative investment professional management platform (that is, "national life capital"), which forms the two asset management platform, which manages major equity investment projects by the insurance subsidiaries of China Life capital representative group and carries out innovative investment.