Beijing's life insurance premiums saw a 12.6 percent decrease to 7.41 billion yuan (US$968.63 million) in the first quarter this year, according to statistics from the Beijing Bureau of the China Insurance Regulatory Commission (CIRC).

The falling life premiums were due to a much higher starting point in life insurance premiums, which was boosted by Generali China Life Insurance Ltd's two billion yuan in additional insurance premiums in the first quarter in 2006.

In 2005, Generali completed an agreement to insure the 390,000 retired employees at its venture partner China National Petroleum, the biggest insurance policy ever sold in China with a total premium of 20 billion yuan.

In the first quarter of this year, the capital city's total insurance premiums reached 11.19 billion yuan, down 3 percent year on year with its property insurance premiums increasing by 33.9 percent year on year to 2.42 billion yuan.

Premiums from health insurance and accident insurance reached 1.15 billion yuan and 220 million yuan in the first quarter, up 6.8 and 21.3 percent respectively compared with a year earlier.

Related readings:  Ping An eyes overseas financial, infrastructure sectors  Regulator takes 22% stake in New China Life  Insurers to invest in overseas equity markets  Insurance trampled in bull run

In the first quarter, Beijing's insurance companies paid 3.39 billion yuan to the insured as compensations, up 70 percent year on year. Among that, property insurers compensated 1.06 billion yuan, an increase of 28.3 percent year on year; life insurers paid 1.99 billion yuan, up 137.8 percent; health insurers¡¯ costs slipped 0.3 percent to 300 million yuan; and insurers paid the insured 34.84 million yuan for accidents, up 37.1 percent year on year.

At the end of this past March, Beijing had 48 insurance branches, including 19 property insurance branches, 26 life insurance branches, two reinsurance branches and one export credit insurance branch. Four property insurers and seven life insurers are headquartered in Beijing.

Statistics show that in the first quarter of this year, China recorded 145 billion yuan in personal insurance premiums, up 17.8 percent year on year. The whole-year growth rate of the insurance is expected to reach 15 percent.

(For more biz stories, please visit Industry Updates)