Chinese insurers have invested 987.17 billion yuan (US$123.39 billion) of their assets in the first five months, up 37.3 percent over the same period last year, industry regulator said Wednesday.

The China Insurance Regulatory Commission (CIRC) said the insurers' assets totaled 1.68 trillion yuan (US$210 billion), up 24.35 percent year on year.

To boost earnings in the insurance industry and develop the country's capital markets, insurers were allowed to expand their investment horizons beyond ultra conservative, low-yield products to corporate debt, domestically listed shares and securities overseas, according to CIRC.

As of the end of May, the country's insurers took 545.3 billion yuan (US$S68.1 billion) to the savings account, 32.4 percent of the assets, a year-on-year increase of 10.27 percent increase.

According to rules drafted by CIRC, insurers will be able to invest in the country's infrastructure sector, real estate, and even buy controlling interests in fund managers and other financial institutions.

Chinese insurers posted a combined premium income of 247.66 billion yuan (US$30.95 billion) in the first five months of the year, a year-on-year 12.84 percent rise, CIRC said.

CIRC said the insurers earned income from life insurance premiums of 187.13 billion yuan (US$23.4 billion) and 60.53 billion yuan (US$7.56 billion) from non-life insurance premiums, up 13.97 percent and 9.5 percent respectively year on year.

China had 82 insurers as of the end of 2005, of which, 42 are life insurers and 40 are non-life insurers.

(Xinhua News Agency June 23, 2006)