PE rules for insurance industry to seek advice soon Life Insurance Co., Ltd. set up PE company

Insurance funds have been considered to be with VC and PE in the investment period of the most matching funds, but also VC and PE fund managers most favoured one of the sources of funding. Social Security Fund investment in PE opened after the taste of the sweetness, Dai said that will increase investment 3 to 5 PE institutions.　　The entry of social security funds is of great significance to enrich the PE capital market and promote the standardization of fund management institutions, and the entry of commercial insurance funds will have a greater impact on the whole market. According to the latest data released July 20 by the CIRC, as at the end of June, the balance of funds used by insurance companies was 3.4 trillion yuan, an increase of 10.4%. Equity and equity investments accounted for 9.8%, up 1.9% from the start of the year.　　Assuming that the proportion of insurance company equity investment is 10%, on the current scale, 340 billion capital will be injected into the private equity fund market, which will be far beyond the scale of social security funds. Authorities have revealed to our correspondent insurance investment not listed company's equity (PE) Implementation of the detailed drafting, is currently within the CIRC to follow the relevant process, is expected to be in the industry soon, this rule will be followed by the National Development and Reform Commission drafted "Equity Investment fund Management measures" issued and launched.　　At present, the "Equity Investment fund Management measures" are reported to the State Council by the National Development and Reform Commission. Reporter learned that the Chinese life, Ping An has submitted the establishment of PE company application.　　Prior to that, Ping An has been transiting Ping Trust, the use of the former ping ' an trust established by the PE platform-Ping ' an innovative capital, and Ping an asset management company in the PE investment business on the centralized operation, reserves and invested a large number of projects. After the introduction of the insurance PE method, the first pilot employment in the field of insurance funds into PE concerns, a director of the CIRC said to our correspondent, "PE in recent years compared to fire, from this year, due to lower asset prices, is indeed the opportunity to invest in PE." At present, the state-funded institutions are more money is the Social Security Fund, but many social institutions are more concerned about the trend of insurance funds. Insurance funds in terms of the time and PE investment best match, many local governments also want to enter the PE field insurance funds. But regulation has been relatively stringent. "" At present, the National Development and Reform Commission is pushing a comprehensive "equity investment fund Management measures", this "method" out, insurance investment unlisted company Equity (PE) implementation rules as a supporting method will soon follow, and then began to do some pilot in large and medium-sized insurance companies.　　The director said so. "We are planning to apply to the CIRC for the establishment of PE management company, because in accordance with the current draft implementation rules, this is the basic threshold for participation in PE."　　"The head of an insurance asset management company in Beijing told reporters. The insurance investment PE gate opening is one of the important tasks for the CIRC to widen the insurance fund investment channel this year. According to the said person in charge, in view of the lack of investment experience in insurance funds, in order to prevent potential risks, in addition to the basic threshold, the CIRC will also set up a series of evaluation indicators, that is, only in line with each indicator can directly participate in PE, thansuch as solvency, corporate profits, premium growth and other key indicators linked. "If there is a negative growth in the premium income over a period of time, it may be blocked outside the door."　　"A person who saw the implementation of the details of the industry told reporters, also based on the risk of consideration, the CIRC also set up a number of stealth threshold, for example, the pilot initially only allow insurance companies to use their own capital for PE investment, and can not use the insurance products such as universal risk funds or product reserves In the head of an insurance company's investment department, the insurance funds enter the direct equity investment industry, from the macroscopic level, it is the inevitable trend of marketization and globalization under the guidance of policy.　　This is because, first of all, the assets managed by the insurance Asset Management company continue to grow, and secondly, the profitability will become the core competitiveness of the future insurance funds, moreover, improving the management capacity of insurance assets will be an important means to ensure differentiated competition. Ping transiting Trust First Test water insurance PE is about to be opened, I am afraid the most happy to be China's peace. In accordance with China's Ping An internal goal plan, in the future two, the Ping an plan in PE, property, infrastructure three major areas to complete the investment scale of 100 billion yuan. China ping ' an "PE program" consists of three teams, located in three subsidiaries of Ping An trust, Ping an asset management company and Ping An securities, has been the first to test the water of the Peace Trust will play more role as leader. [Page] reporter from China Ping An inside learned that a large "PE plan" will be implemented by pipeline operation, a total of the front, middle and back management, the final decision-making body is actually ping an group investment committee. The front level consists of three PE teams mentioned above, three teams share the "project selection-approval project-risk control" process; in the middle and back two levels of operation are already rich in the operation of industrial investment experience under the Peace Trust, Middle-Office is mainly responsible for all PE project integration,　　The background manages the output of the project. According to China's peace insiders, the future of China's Ping An will have three PE management companies. Established by the Ping an Innovation capital company under the Ping An trust under the umbrella, registered capital of about 4 billion yuan, has launched a variety of social funds for PE products, subscribers are mainly banks and other financial institutions; The second PE company will be set up under the Ping an asset management company, with the main use of insurance funds　　Future plans to set up another PE company for Ping An securities customer service under Ping An securities, but the fund will be smaller. According to a trader familiar with China's Ping an "PE program", China Ping An enterprises want to be invested in a year or two to complete the listing, it is best to start the process of listing as soon as possible after the completion of investment, the investment to increase capital, not too like buying old shares, and the investment enterprises in the trading structure can not exist legal obstacles.　　The PE project is completed from evaluation to completion, preferably within two or three months. "We do not have a capital problem, in this market should say that the capital is the most powerful, the key is that there is no good project." Investment scale, the general choice of three to 500 million, more words ten to 2 billion, no matter how much. We and Ping an asset management company in the PE business is common, both sides of the team a total of about hundred people, both at home and abroad have a large PE company experience talent. "Peace and innovation capital insiders told reporters confidently," although many GP from our change, but we do not do LP investment, peace of their own money, also not short of, in financial instruments than all PE companies are all, is not likely to let others tube money. We are concerned about the restructuring of the large enterprise groups listed projects, as well as the two-tier market directional additional. "It is understood that the safety of the Project Standard is: have a certain monopolistic business;" industrial scale, industrial chain has dozens of of billions of enterprises profit, but mainly state-owned enterprises, high profits and high cash flow, high growth and strong stability; In the industry, not the cost and equipment input as the main means of competition; in the foreseeable future　　, the products of the invested enterprises will not have significant substitution products.　　It is worth mentioning that China peace will also inject the concept of cross-selling into the investment enterprises, such as the investment enterprises can with Ping An group for cross-selling, resource sharing, to achieve synergies. Talent into insurance PE biggest bottleneck according to the insurance industry senior figures, according to these standards, currently in line with direct participation in PE investment insurance companies up to 10. According to the reporter to understand that China Ping ' an, China life has submitted to the CIRC to establish an insurance PE management company application. Huatai and other asset management companies have a number of medium-sized companies have plans to submit.　　The rest of the insurance companies are more enthusiastic and less competent. A small insurance company investment department said that, although the interest in participating in PE is very strong, but considering the entry into the field of PE threshold problem, can only wait to see. "In accordance with the requirements of the CIRC, the PE management company must be equipped with a number 120th people, initially estimated to hit a 10 million or 20 million down." Most companies have to take into account input and output issues, coupled with the insurance companies in this area of experience, dare not venture to invest. "In fact, the key bottleneck is the lack of talent. Even plans to submit a PE management company to apply for a Beijing insurance asset management company, but also worried about PE talent difficult to find. "The lack of investment talent has been a difficult problem for the insurance industry, not to mention the more professional PE talents." Because the PE talent recruitment cost is too high, we consider to make full use of the existing human resources in the short term. This is also the main reason why most small and medium-sized insurers choose to watch. However, in the future, these companies will also be able to participate indirectly through the peer platform. "For those insurance companies that have no plans or conditions to set up PE companies, the CIRC will consider allowing them to invest in PE through the commissioning of qualified insurance asset management companies." "An insurance asset management company in charge told reporters, as for the specific mode of the Commission, the rules do not make a clear provision, do not exclude will be copied insurance funds investment infrastructure debt Scheme model, by the insurance Asset Management company issued related PE products, and then by other insurance companies to recognizePurchase。 Insurance PE investment should pay attention to the multiple allocation of insurance funds to invest in the field of PE, well-known PE expert Gocki to our correspondent, suggested that the insurance funds as far as possible diversification of investment risk.　　From the matching of insurance funds, many life insurance funds are the pursuit of long-term stable return, in order to avoid risk, there should be a diversified configuration. "It's risky to make a direct investment or invest in a fund." Because each PE fund has its own strategy, resources, project sources, the field of expertise is different. Insurance companies cannot be good at all areas. A sufficiently diverse configuration is significant for safer and more efficient use of insurance funds. From a foreign perspective, professional institutional investors, including large insurance companies, have adopted a diversified asset allocation approach. Gocki said, "many foreign insurance companies have direct equity investment, PE fund investment and FOF Fund investment portfolio." "" The financial sector has the threshold requirements of capital, such as the ratio, international, bank loans, direct equity investment, PE fund investment, FOF fund investment, the requirements for capital adequacy ratio is not the same. Generally speaking, to do the loan to the capital adequacy ratio demand is lowest, do FOF fund investment, PE fund investment and direct equity investment to capital adequacy ratio demand is getting higher. "For policy formulation, Gocki suggested," for insurance companies are also to consider the PE direct investment, PE fund investment and FOF fund investment risk level differences, so the capital requirements should also be different. ”