The scale of insurance version of asset securitization products exceeds 100 billion yuan! Insurance asset management further expands the scope of investment

On December 17, the Bancassurance Regulatory Commission issued the Circular on revising some normative documents in the field of the use of insurance funds. Among them, it cancels the external credit rating requirements for insurance asset management companies to set up and manage debt investment plans and asset support plans, so as to enhance the autonomy of market subjects to use external ratings. Experts believe that this will help enhance the investment autonomy of market entities and provide long-term sources of funds for multi-level capital markets.

As a relatively new financing tool, asset securitization has gradually shown its strong vitality in recent years. The asset support plan business is the asset securitization business of the insurance asset management version. the insurance asset management institution, as the trustee, sets up the asset support plan, takes the cash flow generated by the basic assets as the repayment support, and issues benefit certificates to qualified investors such as insurance institutions.

When collecting data from the PICC Insurance Asset Registration and Trading system, a reporter from the Financial Times found that as of December 19, 2021, insurance asset management agencies had registered 29 asset support plans, with a scale of 117.24 billion yuan, compared with 72.277 billion yuan for the whole of 2020.

　　The biggest drop in ten years! Since the beginning of this year, the plate has fallen nearly 40% of the insurance stocks. Why?

At the end of 2021, the A-share insurance sector continues to wobble at the bottom.

As of December 22, Ping An Insurance closed at 50.18 yuan per share, down more than 40% from the beginning of the year. The share prices of New China Life Insurance, PICC, China Pacific Insurance and China Life Insurance Company Limited fell by 30.35%, 26.36%, 25.56% and 20.38% respectively during the year.

In the first quarter of this year, due to the early launch of "good start" marketing by insurance companies and the removal of old seriously ill products, the value of new orders and new business of insurance companies showed double-digit growth. However, after entering the second quarter, affected by the emptiness of the team of insurance agents, the consumption of customer demand in advance and the replacement of civil insurance products around the country, the growth rate of business data related to insurance companies declined significantly.

Data show that in the first three quarters of this year, listed insurance companies totaled 340.2 billion yuan in new premiums, down 5.4 percent from the same period last year. In terms of new business value growth, Ping An Insurance, China Life Insurance Company Limited, China Pacific Insurance and New China Life Insurance fell 17.8 per cent, 19.6 per cent, 25 per cent and 30 per cent respectively in the first three quarters. Shen Wanhongyuan expects the new business value of listed insurance companies to fall by more than 20 per cent for the whole of 2021.

　　The scale of national enterprise annuity has increased to 2.5 trillion! The proportion of assets under management entrusted by insurance enterprises is more than 80%.

The latest report card of enterprise annuity has been released!

On December 22, the reporter learned from the official website of the Ministry of Human Resources and Social Security that by the end of the third quarter of 2021, the national enterprise annuity fund had reached 2.526763 trillion yuan, an increase of 20.6 percent over the same period last year. The total investment income in the third quarter reached 17.208 billion yuan.

In addition, since the beginning of this year, the weighted average return of the national enterprise annuity fund has been 3.49%. Nearly half of the corporate trustees are insurance companies, with assets under management accounting for 80.69% of the total.

It is understood that enterprise annuity is a component of the second largest pillar of China's old-age insurance system, which is jointly paid by enterprises and individual employees. Under the principle of emphasizing voluntary payment and more payment, it is necessary to raise pensions for employees through one more channel than the basic old-age insurance, so as to better protect the livelihood of workers after retirement.