The Chinese insurance industry will invest $73bn (£48.3bn) in global real estate by 2019, according to a report by Cushman & Wakefield.
The agent has forecast a significant ramping-up of activity by the investor group following the ongoing deregulation of Chinese capital markets.
Chinese insurers have spent $13.4bn on global property since first being deregulated in 2009, according to C&W data.
The current rules, introduced by the China Insurance Regulatory Commission, allow up to 30% of Chinese insurers’ assets to be allocated to real estate, 15% of which may be overseas.
The current holdings of the major Chinese insurers represent just 0.8% of their collective assets under management.
Nigel Almond, research director at Cushman & Wakefield, said: “For the largest five Chinese insurers, total allocations remain low and no greater than 2%, with some below 1%. Over recent years, investment activity has increased. This can be attributed in part to the liberalisation of foreign investment, which allowed top players to accelerate real estate acquisitions, as well as growth in the value of assets under management.”
Headline deals have included Anbang Insurance’s $1.95bn acquisition of the Waldorf Astoria hotel in New York and Ping An Insurance’s purchases of both the Lloyds Building and Tower Place, EC3, in London.
C&W is now forecasting that the recent volatility in Chinese equity markets will accelerate overseas investment by insurance companies as they seek to diversify their domestic risk.
It expects allocations to grow to around 5% over the next five years, which would equate to $73bn of investment.
By 2024 it expects “exponential growth” to continue through increased allocations and a growth in AUM, which could lead to a further $75bn being invested, taking total holdings to $154bn.
Cristine Lai, author of the Cushman & Wakefield report, added: “Major gateway cities will form the initial focus of activity. Current investments in London and New York underscore this move and other leading cities that witness transactions larger than $100m regularly will follow.”
