The average annual rate of return on Chinese insurers’ investments last year tumbled to the lowest in 15 years, although it exceeded 2022’s rate if unrealized gains were counted, official data showed, reports Caixin. Insurance firms’ investments yielded 2.23% in 2023, down 1.53 percentage points from the previous year, data released last week by the National Financial Regulatory Administration (NFRA) showed. The reading was the lowest since 2008, when the rate slumped to 1.89% from 12.17% the previous year amid the global financial crisis.
When floating profits were included, however, the 2023 rate showed a 1.39-percentage-point improvement from the previous year to 3.22%, according to NFRA data.
The low returns on insurers’ investments came as China’s capital markets showed mixed performance last year, with bonds posting relatively stellar returns while the stock market fell into a rout.