China's listed insurers posted a big leap in profits last year due to tax cuts and higher investment returns, the Shanghai Securities Journal reported Wednesday.
Profits of China Life Insurance (Group) Co. will likely soar 400 to 420 percent year on year in 2019, while those of China Pacific Insurance (Group) Co. will jump 50 to 60 percent, according to preliminary estimates.
Stellar profit increases of up to 80 percent are also expected for the People's Insurance Company of China and New China Life Insurance Co.
Higher investment returns from the domestic stock market and lower corporate income taxes should be attributed to the shining performance of the listed insurers.
Analysts expect that the industry will continue the upward trend this year, thanks to support policies from the government and robust demand for health insurance and endowment insurance products.
The outbreak of the novel coronavirus may weigh down insurers' profitability during the first quarter, but it also helps raise people's insurance awareness, thus boosting the sector's growth in the long run.
