Firms may be allowed to boost stock investment

THURSDAY, APRIL 05, 2012
Firms may be allowed to boost stock investment

The Office of Insurance Commission plans to widen insurance companies' stock investment ceiling, allowing them additional flexibility to manage liquidity.


   The office's public hearing is underway, to sound out opinions on the expansion of the ceiling.
 The OIC is of the view that insurance companies have so far plotted good investment plans and listed companies' shares are of high liquidity with transparent prices. Moreover, insurance companies with investment in high-risk assets must set aside sufficient capital.
 The public hearing will also focus on insurance companies' leverage, as most are long-term and unfit to the nature of the insurance business.