Developments: For the third quarter ended September, the company reported a 3.4% increase in net profit to $1.03 billion. Policy claim reserves were up 26%, while investment income was down 4%. During the first nine months, net income was up 6.3%, while total insurance premiums for the same period jumped 15.9%, as compared to the year-ago period.
The company estimates a positive fourth quarter and upcoming years, driven by the recent interest rate hike. The unexpected hike in interest rate to 5.56% in China, after four years, is likely to boost insurance companies' returns in the upcoming quarters as yields on bond investments increase.
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