China insurance industry profits drop 54% in first half

* H1 earnings fall to 105.6 bln yuan – regulator

* Return on investment slips 42 pct to 294.5 bln yuan (Adds details on investment return)

China’s insurance industry saw its first-half earnings slide 54 percent to 105.6 billion yuan ($15.9 billion), the country’s insurance regulator said on Thursday, squeezed by falling investment returns.

Insurance companies’ return on investment declined to 294.5 billion yuan, down 42 percent from a year earlier, Duan Haizhou, deputy head of the China Insurance Regulatory Commission’s (CIRC) statistics management department, told reporters at a news conference.

Duan attributed the industry-wide lower investment return and profit to a gloomy stock market, decreasing interest rates and China’s economic slowdown.

Insurance premium income reached 1.88 trillion yuan in the first half, up 37 percent from a year earlier, the CIRC said.

Insurance industry total assets rose 15 percent from the beginning of the year to 14.27 trillion yuan at end-June, it said.

($1 = 6.6610 Chinese yuan renminbi)

Source: Reuters