PICC Group to set up subsidiary companies

PICC Group, one of the country's largest insurance concerns, is to set up pension and health management companies, management said.

"We are studying closely the plan to start a pension business as this may reach 1.5 to 2 trillion yuan in the near future," said Sheng Hetai, vice president of PICC Group.

The group will also strengthen its investment asset allocation in the pensions sector, betting on the country's fast growing retirement business, Sheng added.

PICC is also preparing to establish a health management company. "Now the timing is ripe for us to set up a separate business unit," said Dong Xiuqing, vice president of PICC Health Insurance Company.

Beijing-based PICC Group saw its net profit grow 55.2 percent last year to 18.7 billion yuan, according to its annual report.

The group's premium increased 14 percent year-on-year to 349.2 billion yuan, with its overall investment return ratio growing 0.8 percentage points to 6 percent, a statement said.