Earnings worries hit insurers

China Life Insurance Co and Ping An Insurance (Group) Co paced declines in the shares of Chinese insurers yesterday on concern that a drop in the value of their stock investments will hurt earnings.

China Life, the nation's biggest insurer, tumbled by a record 16 percent in Hong Kong to HK$27.6, a five-month low, at the 4 pm close of trading. Ping An, China's second largest, trimmed 12 percent, its biggest drop ever, to HK$59.55.

"Investors are concerned that the rout will eat into earnings for Chinese insurers," said Liu Yang, who helps manage $4 billion as managing director of Atlantis Investment Management Ltd in Hong Kong. "If the stock markets continue to fall, their balance sheets will start hurting in about six months."