China Life still keen on M&As after dropping bid for AIA
China Life Insurance, the country's largest insurer, said it remained interested in foreign acquisitions after pulling out of its bid for American International Group's Asian unit.
Speaking on the sidelines of the Chinese People's Political Consultative Conference, China Life chairman Yang Chao said the company was actively seeking mergers and acquisitions to strengthen its overseas services.
'We have no strategic investors,' Mr Yang said.
'We are always looking for and hope to attract overseas talent.'
The state-owned insurer had been interested in the Hong Kong, Singapore and Malaysia businesses of American International Assurance, AIG's Asian unit, Mr Yang said.
'The situation changed during our six months or so talks' as AIG was hit by the financial crisis, he said.
Having amassed hefty investment gains before the stock market fell last year, analysts said China Life was among the few insurers that could afford making big acquisitions.
'It's a matter of choices for China Life,' said Ivan Li Sing-yeung, an analyst with Kim Eng Securities.
'They have always been prudent in making any foreign deals. In this environment, you have to be even more picky.'
China Life gained 4.3 billion yuan (HK$4.88 billion) on the sale of equities during the first half last year, including the proceeds from its US$300 million investment in Visa's initial public offering. The purchase of Visa shares was the company's first overseas investment.
Mr Yang said China Life would also invest on the mainland, including some industrial private funds, such as Tianjin's Bohai Industrial Fund, and stake purchases in financial institutions.
The insurer reaped a 48.23 billion yuan investment return last year.
'The falling stock market has provided investment value,' Mr Yang said.
The insurer delivered 19.5 per cent premium growth in January despite the holiday impact from the Lunar New Year.
Mr Yang said China Life's full-year premium growth target was slightly higher than last year. It collected 295.6 billion yuan in premiums last year, up 50.3 per cent.
Macquarie expected China Life to continue to benefit from the volatile equity markets and lower deposit rates that made insurance products more attractive.
