Looking at our three major business lines, the net revenues of our P&C insurance segment witnessed a marginal decreases of 0.6% year-on-year, primarily due to increased market competition as insurance companies strengthened the investment in direct sales and telemarketing. Besides insurance companies have been increasing commissions paid to their direct sales channels, just we also need to increase commissions payout to our sales agents benchmarking the market level which further squeezed the profits out of our labor driven sales model and reduced the gross margin of our P&C insurance segment.
On the life insurance side, impacted by the weak performance in the life insurance industry our sales of new policies recorded a negative growth but the total net revenues derived from life insurance business was up nearly 9% from the year ago quarter, primarily driven by the increase in the sales of short-term health insurance and recurring commissions derived from regular premium insurance policies. Recurring premiums recorded a strong growth of 22.5% year-on-year for the second quarter of 2012. Claims adjusting business was relatively stable with net revenues up 7.9% from the year ago quarter, although its gross margin witnessed a slight decrease.
Behind the sudden (inaudible) long, rapid growth of the Chinese insurance market starting from 2011, is inherent efficiency in its expanses development model and industry is in a critical period of structural. In the meantime the regulatory body continues its effort to push the insurance industry in a sustainable and healthy way. Recently, the [CIC] issued a series of rules and regulations that allow insurance companies to broaden their investment scope and continuously launch products and service innovations in an effort to drive insurance companies to strengthen their core competencies in asset management and product design.
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