Insurers struggle amid stock market declines

China Life and Ping An Insurance both announced disappointing third-quarter results on Monday, largely due to the impact of struggling stock markets on investment income, Reuters reported. China Life, the country’s largest life insurer, saw net profit for the period fall by more than 70% to US$342 million while Ping An posted a net loss of US$1.15 billion compared to profit of US$772 million a year ago. Ping An’s deficit came after it booked a charge against its investment in Fortis, the troubled Belgian-Dutch financial group. Ping An also revealed it had lost US$1.81 billion on its investments in the third quarter, a direct result of the Shanghai Composite Index dropping by nearly 70% so far this year. The company – which is now paying more attention to fixed-income assets – earned US$2.5 billion on its investments in the third quarter of 2007.