Xin Lang Cai Jing·2025-12-12 14:20Core Insights - China Pacific Insurance (CPIC) has demonstrated outstanding investment performance in recent years, attracting significant attention and curiosity regarding its strategies and principles for asset-liability management [1][7] Asset-Liability Management Principles - CPIC emphasizes three principles for asset-liability management: safety, profitability, and liquidity, alongside three matching strategies: cost-benefit matching, term structure matching, and cash flow matching [8] - Approximately 90% of insurance assets stem from policy liabilities, necessitating long-term management of funds to align with the long duration of liabilities [8] Long-Term Assessment and Market Mechanism - The company has established a long-term assessment mechanism characterized by a rolling 3 to 5-year evaluation period, which has helped mitigate market volatility and achieve performance exceeding industry averages [3][9] - CPIC's asset management division employs a market-oriented investment standard, facilitating discussions with internal and external clients based on a three-year assessment cycle, a rarity in the industry [9] Equity Investment Strategy - CPIC adheres to a core strategy focused on dividend value, which not only provides stability across market cycles but also serves as an effective means to address net investment income pressures [10] - The company implements a "core + satellite" investment strategy, combining its differentiated investment capabilities with equity asset allocation to diversify sources of investment returns [10][11] Duration Management - In managing fixed-income assets, CPIC has significantly increased its allocation to long-term government bonds, effectively extending the duration of its asset portfolio [5][11] - The company believes that a duration gap of zero is not necessarily optimal, as overly focusing on minimizing this gap may sacrifice potential risk-adjusted returns [6][11] - Maintaining a reasonable duration gap is essential for creating better long-term returns, especially given the low asset accumulation levels in the insurance industry [6][11]