Taikang Insurance Group Inc. favors investments into infrastructure projects, emerging sectors supported by the Chinese government and healthcare services, according to a senior manager of the group.
"Insurance funds are large in size, long in duration and low in risk appetite," Ying Weiwei, assistant president at Taikang, said Dec. 19 during a press conference with the China Insurance Regulatory Commission. "We are prudent [in our investments] and want to have stable returns."
Ying said infrastructure projects require a significant amount of funds and a long construction period, while risks are usually low. The insurance group has also been looking into emerging sectors supported by national strategies, he added.
In addition, Taikang is adding its own healthcare ecosystem to its operations, Ying said. "We want to not only provide traditional life insurance services but also provide property and casualty insurance, medical care and elderly care services."
"In the meantime, we are interested in investing in the healthcare industry, for example, in pharmaceutical enterprises and medical institutions," Ying told reporters. "We think there will be strategic synergy after we invest in such enterprises."
Investments in transportation, energy, hospitals and nursing communities have long capital payback periods, said Liu Tingjun, vice president of the group. "But once the returns are stabilized, they are less affected by economic cycles and are very strong and good assets."
The insurance group manages assets over 1.1 trillion yuan, the company said, with more than 290 billion yuan channeled into alternative assets.
As of Dec. 19, US$1 was equivalent to 6.60 Chinese yuan.