China Pacific Insurance (Group) Co said its first-half profit more than doubled from last year to 5.5 billion yuan (US$899 million) as the country's third largest insurer benefitted from rising life income premiums and improving investment returns.

Its life insurance unit's net profit soared 227 percent year on year to 3.5 billion yuan, with new business value, a measure of the present value of future business for life insurers, up 4.8 percent from a year ago, the company said in a statement yesterday.

Its net profit from the property and casualty insurance unit rose 11 percent annually, the statement said.

But Gao Guofu, CPIC chairman, warned in a statement that the property and casualty unit faces stronger competition in the industry and rising claims.

CPIC said that its margin has narrowed as the combined ratio, which measures profitability, in property and casualty insurance products increased just 3 percentage points to 97.7 percent.

A ratio below 100 percent means an insurer is receiving more in premiums than it is paying out in claims.

The company's gross investment return rose slightly by 0.9 percentage point from last year to 4.8 percent in the first six months.

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