ABL Life Achieves Top 3 Asset Management Returns Among Life Insurers for 7 Consecutive Years

Recorded 4.3% as of the end of last year

ABL Life announced on the 8th that as of December last year, it recorded an asset management yield of 4.3%, ranking second in the life insurance industry and maintaining a top 3 position in the industry for seven consecutive years.

Asset management yield is a figure obtained by dividing the operating income earned through asset management over a certain period by the elapsed managed assets. It is an investment return indicator that shows an insurer's asset management capability.

ABL Life recorded asset management yields of 4.2%, 4.2%, 4.1%, 3.9%, 4.1%, 4.1% (based on the Life Insurance Association’s disclosed adjusted operating asset yield) from 2017 to 2022 respectively, and 4.3% in 2023 (based on each company’s disclosed data). The industry average last year was 3.3%.

Due to the characteristics of life insurers’ asset management, ABL Life has built and directly manages a bond-centered investment portfolio. Rather than aiming for short-term profit realization, it has established and operates a bond portfolio mainly composed of government and public bonds from a long-term perspective to secure interest margin.

Additionally, it has focused on selecting alternative investment projects with high risk-adjusted returns, gradually expanding the proportion of alternative investments relative to total assets from 6.8% in 2016 (based on IAS39) to 22.6% in 2023 (based on IFRS9). As a result of these investments, it has recorded asset management yields significantly exceeding the industry average.

In alternative investments, ABL Life operates an investment portfolio focused on loan receivables that can enjoy stable interest income. Through its overseas deal sourcing network, it directly discovers highly capable foreign asset managers and is conducting numerous competitive and differentiated overseas alternative investments.

An ABL Life official explained, "The reason behind achieving higher asset management yields compared to the industry average lies in a deep understanding of the market environment, the establishment of a balanced management strategy based on this understanding, and faster investment decision-making."

This content was produced with the assistance of AI translation services.