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Moody's Revises Outlook on China's Life Insurance Sector to Stable
2026-10-27 15:02:56 Moody's said it has revised the outlook on China's life insurance sector from negative to stable, expecting industry premiums to grow at a healthy single-digit pace by 2027, mainly benefiting from households continuing to reallocate savings into insurance products amid relatively low bank deposit rates. Long-term bond yields have stabilized since early 2025. If this trend continues, pressure on insurers' capital adequacy and profitability will ease further. Meanwhile, insurers continue to adjust their product mix by increasing the proportion of participating products, which generally carry lower interest rate risk. Moody's said asset risk is still rising as insurers increase equity investment allocations, although the pace of increase has slowed significantly compared with 2025. Since 1Q26, the industry's solvency ratio has largely stabilized. Insurers' profitability continues to improve, while growth in contractual service margins has resumed, supporting earnings from core insurance operations. Favorable capital market conditions have also supported earnings performance, although insurers remain vulnerable to potential market corrections due to their expanding equity investment exposure. The regulatory environment remains supportive for life insurers, easing intense competition over commission expenses and improving profit margins. (ha/j)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |