In Depth: Falling Yields Pile Pressure on China’s Insurers

China’s insurance companies reported higher investment returns in 2024 despite falling market interest rates and an economy flirting with deflation, as the bond market soared, the stock market took off in the latter part of the year, and companies increased their dividend payouts.

Insurance companies’ annualized total returns were 7.16% in the first three quarters of 2024, compared with 3.28% in the year-earlier period, according to the latest data from the National Financial Regulatory Administration (NFRA), the country’s top insurance watchdog.