PICC Property & Casualty, China's largest non-life insurer, said it has agreed to invest 160 million yuan in PICC Asset Management to capture the growing mainland fund management market, The Standard reported.   PICC AMC, a fund management venture between PICC's parent group PICC Holding and German-based Meag Munich Ergo Asset Management, will boost its capital to 800 million yuan from 100 million yuan by getting more funds from existing shareholders and bringing in new investors, said the company in a statement.   However, Merrill Lynch analysts Bob Leung and Alistair Scarff said to the Standard that the deal only provides extra "seed capital" to facilitate the parent group's expansion plan.   They said it would only have "limited real benefits" for the shareholders of listed PICC because PICC AMC's return on capital is only less than 2 percent.   PICC AMC posted a profit after tax of 1.92 million yuan in 2005 and has a net asset value of 102 million yuan as at the end of 2005.   "While this investment is relatively small, PICC will continue to be starved of capital as its parent PICC Holding continues its expansion into other areas of financial services," they said, adding that "they are not as comfortable" with PICC Holding's expansion pace due to PICC's own capital constraints, quoted the paper.