Returns on China’s variable life insurance products plunge

A report released by Sinolink Securities showed that China’s variable life insurance products have posted investment returns of -11.43% on average during the third quarter of this year.

Variable life insurance products are life insurance with an investment component.

The Sinolink Securities report was based on a survey of 193 variable life insurance accounts held by insurers in China.

Although investment returns were down during the July to September period, the report said average yields on variable life insurance schemes were still a positive 8.64% since the beginning of this year.

Meanwhile, recent data from the Insurance Association of China (IAC) showed that China’s compulsory motor vehicle liability insurance incurred underwriting losses of Rmb4.7 billion (US$737 million) last year.

China insurance premium income in 2014 topped Rmb2 trillion, an increase of 17.5% from a year ago, according to the Insurance Regulatory Commission.

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