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China's insurance sector recovery exceeds expectations


China's insurance sector has shown better-than-expected recovery in the first quarter of the year, according to the National Administration of Financial Regulation (NAFR), the country's new financial regulator. Total premiums for the quarter grew by 9.2% year-on-year to reach RMB1.95tr (HKD2.17tr). The compound annual return of insurance capital rebounded to 5.24% during this period, indicating a positive trend. Additionally, the solvency ratio, although experiencing a decline, narrowed significantly and remained within a reasonable range. The NAFR emphasized the need to strengthen monitoring of the sector's solvency ratio to mitigate risks and avoid systemic financing issues. The regulator pledged to closely observe insurers' solvency ratios and take measures to prevent potential financing risks in the insurance industry.

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