Insurers see extra NT$4.5 bil. annual gains from RMB trading

According to the LIA, the government's policy to allow Taiwanese life insurers to invest in Chinese currency-denominated real estate properties and securities will help improve the companies' capital utilization flexibility, asset allocation ability and mainland branch operation.

Currently eight local insurers have applied for a QFII (qualified foreign institutional investors) quota from mainland China, the LIA pointed out. Life insurers are expected to see NT$500 million annual profit gain thanks to QFII-related investments and NT$4 billion from dim sum bonds.

Meanwhile, the LIA said will deliver life insurers' proposal for self-regulation in local real estate investment, including an offer to set minimum rate of return at 2.875 percent, to the Financial Supervisory Commission (FSC) by the end of February in a bid to persuade the FSC to lift its ban on such investment by March. All overseas real estate investments by Taiwanese life insurers have return rates far above 2.875 percent, the LIA said.

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Chen pledges to talks on tackling yen devaluation

NEXT ARTICLE
Hon Hai unit's profit warning hurts shares

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit