China Insurance (Holdings) Co Ltd, the local insurance industry's overseas flagship, reported a robust profit for 2003 after suffering a loss in the previous year.

The Hong Kong-based state-owned conglomerate chalked up nearly HK$1 billion (US$128 million) in pre-tax profit last year as efforts to further explore markets and optimize business strategies paid off, senior executives said Thursday.

Premium income totaled HK$6.7 billion (US$858 million) last year, it said.

Premiums doubled at the Tai Ping Insurance Co Ltd and Tai Ping Life Insurance Co Ltd, the group's major domestic subsidiaries, which it sees as a good performance given their short history on the mainland market.

The group's total assets grew to HK$24.4 billion (US$3.1 billion) at the end of 2003, with net assets standing at HK$3 billion (US$385 million).

"We realized rapid growth in scale and profitability simultaneously and have turned around the loss making situation," Yang Chao, chairman of China Insurance, told the company's annual conference.

"The group has made significant improvements in its operations and is now on a path of healthy development."

China Insurance was founded in 1931. After it was restructured into a subsidiary of the People's Insurance Company of China, it ceased all of its domestic insurance business but continued its overseas operations, developing them into the domestic insurance industry's flagship in the international market.

Wu Dingfu, chairman of the China Insurance Regulatory Commission, Thursday acknowledged China Insurance's performance last year, and urged the company to take advantage of the current favorable environment and strive for frog leaps in its development.

The central government has attached greater significance to the insurance industry, while China's fast-growing economy, especially the private sector, and massive bank savings translate into huge growth potential for the insurance industry, he said.

Its long history, familiarity with the international market and close ties with the Chinese market give China Insurance a strong edge in competing with both foreign and other Chinese insurance firms, Wu said.

This year, Yang said overseas subsidiaries should firmly stick to profitability, but domestic operations need to also pursue faster premium growth while ensuring profits.

Yang urged domestic subsidiaries to speed up the construction of branches and said more efforts will be made this year to develop new products to tap diversified market demand.

(China Daily February 13, 2004)