Research On The Mode Choice Of Insurance Institutions Investing In Private Equity Funds In China

Insurance funds’ investing in PE is an important aspect of the use of funds.From September 2010 to September 2015,the regulatory policy of insurance companies investing in PE loosened gradually,which enhanced the feasibility and effectiveness of insurance companies’ investing in PE.Thus the investment of insurance funds in PE has been widely studied by scholars and breakthroughs have been made in practice and innovation.Scholars studied the risk,the significance and the exit channels of insurance institution investing in PE,but there is few study on which mode is fit for the insurance companies.With the polices of insurance funds investing in PE loosening gradually,many insurance companies such as Ping An insurance,China life insurance,Tai kang Life Insurance,sunshine insurance and so on as a limited partner or general partner of PE,which made different choices of the mode investing in PE.Though which mode is the most beneficial to different companies remains to be verified.Based on the research background,this paper introduces the current situation and significance of the PE investment of insurance institutions,analyzes the causes of insurance companies in different sizes choosing different types of investment on PE,such as Sunshine Insurance Group,Everbright asset management company and Happiness Life Investment,and analyzes the investment ability,risk Capacity,investment demand,social recognition and other factors affect the insurance institutions investing in PE,It is concluded that the large insurance institutions are independent as the GP investing on PE,the small and medium-sized insurance companies with asset management companies combined as the GP invest on PE,the rest of the small and medium-sized insurance companies as LP invest on PE.