China Pacific Insurance, the mainland's third-largest insurer by market value, plans to curb its stock investments while increasing purchases of fixed-income products amid worries over a slowing domestic economy and the euro zone debt crisis.
The Shanghai-based insurer also said it would not raise additional funds in the near future as its finances are strong enough to support its business growth.
Yu Yeming, chief of China Pacific's asset management unit, said the A-share market outlook remained cloudy this year and the insurer would take a cautious stance.
The mainland's key stock index was among the world's worst-performing indicators in 2010 and last year before top securities regulator Guo Shuqing called investors to look for bargains and predicted an 8 per cent annualised return.
However, major state-owned insurers including China Pacific and Ping An Insurance, the mainland's second-largest insurer, thought otherwise. Ping An said earlier this month that it would focus on bond investments while reserving a reasonable portion of assets for stocks.
Yu said China Pacific would embark on a 'defensive strategy' for equity investments.