The investment yield of non-listed insurance companies will rise in 2024, exceeding 3%, reaching a maximum of 8%, and the gate for investment in gold in the New Year is “opening”

(Photo source: Visual China)

Blue Whale News, February 12 (Reporter Shi Yu)While the solvency report of unlisted insurance companies for the fourth quarter of 2024 was released, the latest investment return performance also emerged.

Last year, the investment return rate of unlisted insurance institutions rose overall, and the average and maximum values were optimized compared with the previous year. For asset allocation in 2025, based on industry feedback, we will steadily allocate fixed income, seek structural opportunities in the equity market, and improve Quality alternative investment is still the mainstream path. At the same time, expanding investment channels and enriching investment structures are also continued exploration directions.

Among the diversified paths, recently, supervision has opened to test the test of investment in gold business by insurance funds. Ten insurance companies have been approved, and no more than 200 billion yuan is expected to enter the market. Industry analysis shows that gold has the characteristics of low correlation with other assets and strong liquidity, which will help improve the stability of the return of insurance investment portfolios and alleviate the pressure of potential interest spread losses. However, it should be noted that as the price of gold rises, insurance funds need to strengthen the judgment of price trends and effectively use relevant financial instruments to hedge, which will test the comprehensive investment capabilities of insurance institutions.

Industry investment income is generally higher, and the investment path in the New Year is clear

According to the incomplete sorting out of the solvency reports disclosed by unlisted insurance companies recently, in 2024, the average investment return rate of unlisted personal insurance companies will be 4.32%. Among the 59 personal insurance companies that disclosed investment income data, 39 have investment return rate data exceeding 4%, of which the highest reaches 8.86%, and the investment return rate of 5 insurance companies exceeds 6%; The average investment return rate of non-listed property insurance companies in 2024 is 3.07%, which is also better than the previous year in terms of average value and interest rate distribution range.

Optimization of investment has also become the main reason for the recovery of profit margins of insurance institutions in 2024. In 2025, in the face of a low interest rate environment and interest rate loss risk, adjusting and optimizing the asset allocation structure is the key work of insurance institutions.

Judging from the industry’s perspective, on the one hand, we should continue to allocate fixed-income products, such as ultra-long-term interest rate bonds, to lengthen the duration and strengthen and stabilize the ballast stone for insurance capital allocation.

“Fixed-income investment needs to actively grasp the interest rate rebound window under a relatively neutral duration strategy, and increase returns through transaction-based investment. Zhao Hui, vice president of China Life Assets, recently analyzed.

Equity investment is the key to the increase in the investment income performance of many insurance companies in 2024. Last year, insurance companies and institutions jointly promoted a wave of placards, focusing on high dividends and dividend assets. The policy level also blew frequently to promote medium-and long-term funds to enter the market. Many insurance companies have made it clear that in 2025, they must actively seek high-quality assets in the equity market, pay attention to band and structural opportunities, and increase investment returns.

Parallel logic also lies in expanding investment channels and enriching investment varieties. Recently, the State Administration of Financial Supervision issued the “Notice on Carrying out the Pilot Project of Insurance Funds Investing in Gold Business”(hereinafter referred to as the “Notice”), approving 10 insurance institutions to carry out pilot projects of insurance funds investing in gold business for the purpose of medium and long-term asset allocation.

Previously, regulators have repeatedly spoken out on exploring pilot investment in gold assets with insurance funds. As early as 2020, the “Opinions on Further Accelerating the Construction of Shanghai’s International Financial Center and Financial Support for the Integrated Development of the Yangtze River Delta” jointly issued by multiple departments clearly proposed to explore insurance funds to rely on relevant Shanghai exchanges to pilot investment in gold, oil and other bulk commodities. In June last year, Li Yunze, director of the State Administration of Financial Supervision, publicly stated that he would actively explore pilot investment of insurance funds in gold contracts and related products of the Shanghai Gold Exchange.

Insurance funds buy gold next time, enriching the investment portfolio and testing comprehensive investment capabilities

According to the industry’s calculation that the total assets of the 10 insurance companies participating in the pilot during the latest reporting period are approximately 20 trillion yuan. If the total book balance of investment gold specified in the Notice is reached, it must not exceed the company’s total assets at the end of the previous quarter. %, the upper limit of funds invested in this channel is approximately 200 billion yuan.

A sizable scale may enter, what changes will it stir up?

First, increasing gold investment is good for enriching the investment portfolio of insurance funds and alleviating the downward pressure on the yield of traditional fixed-income assets in a low interest rate environment.

At the same time, based on gold, an investment target with both currency and commodity attributes, it has low correlation with other assets such as stocks and bonds. Moreover, gold has a high degree of recognition around the world, is highly liquid, and has a certain risk avoidance function, which will help improve the stability of portfolio returns.

“Gold is a global currency with good liquidity. Insurance funds can indirectly participate in the international market by investing in gold, which is expected to enhance global asset allocation capabilities to a certain extent. Especially when market volatility intensifies and inflationary pressures increase, gold prices may be expected to rise and help Insurance funds preserve and increase value, enhance long-term returns and alleviate potential spread loss pressure, said Minsheng Securities Research News.

In addition, many parties predict that the gold bull market is not over yet and gold prices are expected to rise further. The admission of insurance funds under the launch of this pilot will bring incremental demand to the gold market, while improving the activity and liquidity of the gold market. Support the stability of gold prices.

However, it should be noted that the Minsheng Securities Research Report also reminded that the current gold price continues to rise, and the overall physical and futures prices are at a high level. Insurance funds need to strengthen price trend research and judgment and effectively use relevant financial instruments to hedge. Therefore, the development of gold business will test the comprehensive investment ability of insurance funds.

Kong Xiang and Wang Dekun, researchers at Guosen Securities, also analyzed that gold investment meets the medium-and long-term strategic allocation needs of insurance funds, but short-term demand may be relatively weak. ldquo; First, gold prices have continued to hit record highs recently, so the willingness of insurance funds to invest in gold in the short term may be affected to some extent. Second, gold has weak matching with the duration of the debt end, so it is difficult to use as an investment tool to shorten the asset-liability gap. Third, gold does not generate interest other than leasing, which is difficult to match the future cash flow requirements under the new standards. Therefore, it is not an asset type preferred by FVOCI. rdquo;