The insurance investment fund fell by 9.12 billion yuan ($1.33 billion) from September to 2.16 trillion yuan in October, said the China Insurance Regulatory Commission. This is the third time that the insurance investment fund posted a month-on-month drop this year.
Insurers' deposits in banks rose 18.74 billion yuan in October, while it declined 13.73 billion yuan in September.
The insurance fund's decline in investments and increase in deposits resulted from fluctuations in the stock and bond markets, said Wang Xiaogang, an analyst with Orient Securities Co Ltd.
The benchmark Shanghai Composite Index sank 24.6 percent month-on-month in October. The shrinking market value of the stock market greatly impacted insurers' investment for stocks.
In addition, higher risks have prevented insurers from their previously increasing investment in the bond market causing insurance fund to turn to deposits from investments as well.
The insurance industry earned premiums of 61.49 billion yuan in October, 19.08 billion yuan less than September. Life insurance premium revenues declined 13.61 yuan from the previous month to 40.29 billion yuan.
Premium income of China Life fell below 20 billion yuan in October, the first time this year. PICC posted a year-on-year decline of 7.62 percent in October to 4.3 billion yuan in premium revenues. Ping An Life Insurance took in about 7.1 billion yuan, up 9 percent year on year, yet the growth rate was much lower than September.
The industry's assets had amounted to 3.19 trillion yuan as of October this year.