The Analysis About The Return Of The Investment Of China’s Life Insurance Funds

On October24,2004, the China securities regulatory commission and China insurance regulatory commission jointly issued and implemented the <The Insurance Institutional Investors in The Stock Investment Management Interim Measures>. In the measures, insurance funds are approved for the first time to invest in the stock market. In the same time, bond has stable investment income, and the proportion of investment is rising year by year.Since1980, the proportion of securities investment accounted for total assets in western developed countries has raised. Because insurance funds have long-term, stability, and major characteristics, insurers are becoming important institutional investors in the stock market. Therefore, the return of insurance funds directly investing in stock market is very important.According to the statistics about domestic insurance industry by the CIRC, life insurance companies’ assets accounted for most of the total assets of the insurance industry. So this article chose to analyze life insurance companies’ insurance funds. and the author set up a investment evaluation system to measure the return of insurance funds directly investing in the stock market. This system is based on investment scale, investment income and the contribution of stock market return to the total investment income. At the same time, when calculating the stock investing income, the author uses ’warehouse shadow method’, which is established by Jianlong Zhang.Then, after analyzing the overall situation of the insurance funds of life insurers investing in stock market in Chian, the author chooses the Chinalife and Pingan to detail analysis. The result shows that both of the two companies prefer to invest in listed companies, which can provide long-term dividends. And then the author also did the same analysis about the American insurance funds, and chose Metlife as the example of case to do the research. Finally, the result shows that the American insurance funds also prefer to invest in listed companies which can provide long-term dividends.According to the results, in order to obtain more income form investing in stock market, insurance funds should invest in listed companies with providing long-term dividends ability, increase investing proportion in stock market, and use the return on investment to regulate investment managers.Through analyzing the relevant literature about insurance-funds investment in the domestic, the author finds that most of the literature is about the choice of investment channels, investment regulation and investment strategies. There is barely literature about income of insurance funds investing in stock market. So that the author chose to do research form this angle. In order to do the research more correctly, the author establishes a system to analyzing the investment return. This system is formed by three aspects, which are investment proportion, investment return and the contribution of stock investment income to total income.