Real Estate Investment Analysis Of China Insurance Group

2009, insurance funds are allowed to invest in real estate, which provides a new way onperfecting the asset allocation and matching the liability structure for China insurance group. Withthe regulator loosening the policies on the insurance funds, real estate has become an importantway on the investment of insurance fund for China insurance groups. Real estate investment ismainly derived from the Asset-Liability Management theory (ALM), and the realistic problems forthe insurance groups is how to math the different maturities liabilities, which are arising fromthe various insurance funds converged by the various types of insurance subsidiaries. The lowefficiency using of insurance funds puzzles the China insurance groups, which most still rely onprofit of insurance revenue, instead of investment, and real estate investment is just beginning.This paper analyzes the real estate investment models of the main foreign insurance groups,comparison by the investment model of domestic insurance groups, and compared insurancegroup real estate investment characteristics and advantages and disadvantages of various models,combining Enterprise Resource Theory and Company Boundaries Theory, obtained the conclusionthat insurance group need to establish a professional real estate investment platform. through theanalysis on the property type for the real estate investment of the major international insurancegroups, combined with Asset and Liability Management Theory, this paper propose the definitiveconclusions that the different types of insurance group should invest in different types of property:life insurance groups should be emphasis on business property investment to match long-termliabilities of life insurance funds; the non-life insurance group should focus on the type of propertydevelopment for sale to get a relatively high short-term gains, reduce capital occupancy period.Finally, through analyzing the Chinese People’s Insurance Group(PICC)’s real estateinvestment mode and cases, this paper find the defects on the real estate investment of PICC, andprovide corresponding recommendations on the real estate investment to domestic insurancegroups combined with the PICC’s case.