China Pacific Insurance Group recorded 44.7 percent year-on-year growth in interim net profits to 5.82 billion yuan, reports yicai.com, citing a company filing. Sales revenues generated by its insurance businesses rose 14.2 percent year-on-year to 86.88 billion yuan.
The firm capitalized on rapid growth in profitability of property insurance and life insurance, realizing the highest net profit growth rate among three insurers listed in domestic market during the accounting period.
Life insurance and property insurance yielded 2.79 billion yuan and 2.34 billion yuan in net profits, up 28.5 percent and 54 percent year-on-year respectively.
The weighted average return on net assets rose two percent points to 7.2 percent. Sales generated from life insurance grew 11.5 percent year-on-year to 54.57 billion yuan as the firm focused on improving bank sales channels that had been performing poorly.
Pacific Insurance generated sales of 32.27 billion yuan from its property insurance business, up 19.2 percent year-on-year and two percentage points higher than the industry average.
The Shanghai-based firm grabbed a 13.2-percent share of the property insurance market, up 0.4 percentage points from the same period a year ago. The firm generated 23.81 billion yuan in auto insurance premiums, an increase of 17.6 percent year-on-year. The net return on investment grew more than 20 percent year-on-year.
As of the end of June, investment assets under management totaled 490.51 billion yuan, up 12.6 percent from the end of 2010. Pacific Insurance attributed the growth in cash inflows to its insurance business and value added from existing assets.
The company added aggregately 36.38 billion yuan in fixed income assets, most which were allocated to long-term debts
Pacific Insurance made an additional 11.86 billion yuan in equity investment and another 2.95 billion yuan on infrastructure. It realized a return of 10.83 billion yuan from investment, up 16.9 percent year-on-year, with a total investment return of 4.4 percent, up 0.1 percentage points on yearly basis.
The company sold various liabilities, resulting in a decrease in marketable securities assets.
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