Chinese insurers set to see earnings grow in Q2, UBS says

The new business value of the life insurers is set to rise 5-10 percent from April to June, and they also expect the growth to return to double digits next year.

Chinese insurers are set to see their earnings grow in the second quarter of 2018, UBS said today.

The new business value of the life insurers is expected to increase 5-10 percent from April to June amid a better product mix as well as improved quarterly gross premiums and first year premiums, the global investment bank said.

New business value is a key metric to measure a life insurance company’s profitability of new policies sold.

UBS estimated that insurers will see the growth return to double digits next year and higher renewal premiums.

The Swiss bank noted that Chinese life insurance products will move toward offering more protection or longer duration in the future.

 For property and casualty insurance companies, UBS expects the sector's combined ratio to rise by around 60 basis points compared with a year ago.

A combined ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations.


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