## Figure 1.21. Chinese Insurers

## Source details

**Canonical URL:** [Figure 1.21. Chinese Insurers](https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-21.pdf)

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### Growth and revenue drivers
- Chinese insurers have grown rapidly ...... fueled by life insurance sales.
- Insurers’ shares have risen sharply, accompanied by high volatility.
- Increased revenues have been invested in higher-risk assets but capital has not been raised.

### Equity performance and volatility
- Equity performance (2014 = 100) tracked across 2014–2018 (panel label: 201415161718).
- Volatility is measured as the annualized standard deviation of the relative price change for the 60 most recent trading days’ closing price.
- Equity performance time series references include years 2010–2018 (panel labels: 201011121314151617 and 201415161718).

### Asset mix and "Other Assets" decomposition (2016)
- Decomposition of “Other Assets,” 2016 (Percent of other assets):
  - Asset management products and wealth management products: 30%
  - Debt schemes: 27%
  - Equity funds and schemes: 25%
  - Associates and joint ventures: 12%
  - Real estate: 6%

### Capital and alternative investments (2016)
- Capital and Alternative Investments, 2016 (Percent of assets) — panels based on annual reports of the 15 largest life insurers.
- The 15 largest life insurers cover two-thirds of the total assets of the Chinese insurance sector.
- Panel notes: an associate is an entity in which the company/group has a long-term interest of generally not less than 20 percent of the equity voting rights and over which it is in a position to exercise significant influence.
- Variation of alternative investments and capital buffers within the sector is large.
- Other assets are mainly portfolios of infrastructure projects, real estate, and loans provided by asset managers.

### Observations on sector composition and risks
- Largest 15 life insurers versus rest of sector comparisons appear in capital, equity, funds, and “other assets” composition (panel layout implies bubble-size denotes total assets in panel 6).
- China insurance, China banks, Heng Seng index referenced for comparative equity performance.
- Sources cited in the figure: Annual reports; Bloomberg Finance L.P.; China Insurance Regulatory Commission; Morgan Stanley Capital International; and IMF staff calculations.

*Figure notes: In panel 3, volatility is calculated as the annualized standard deviation of the relative price change for the 60 most recent trading days’ closing price. In panel 5, an associate is an entity in which the company/group has a long-term interest of generally not less than 20 percent of the equity voting rights and over which it is in a position to exercise significant influence. Panels 5 and 6 are based on annual reports of the 15 largest life insurers. These companies cover two-thirds of the total assets of the Chinese insurance sector. In panel 6, the size of the bubbles denotes total assets.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-21.pdf_