CHINA PACIFIC INSURANCE (GROUP) CO., LTD. (Stock Code: 2601.HK): Group OPAT to the parent increased by 13.5% year-on-year

The Comprehensive Business Capabilities Continued to Strengthen CPIC Releases 2022 Annual Report

HONG KONG, March 27, 2023 /PRNewswire/ -- On 27 March, China Pacific Insurance (Group) Co., Ltd. ("CPIC" or the "Group"; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) released its annual report of 2022. In 2022, CPIC did not shy away from difficulties, did everything in its power to deliver a solid set of business results, which was particularly valuable given the formidable challenges. GWPs amounted to RMB398.818 billion, a year-on-year growth of 8.7%; Group OPAT attributable to the parent reached RMB40.115 billion, up by 13.5% compared with 2021; as of the end of 2022, Group consolidated total assets stood at RMB2,176.299 billion, an increase of 11.8% from the end of the preceding year, with continued enhancement of overall business operation.

Specifically, CPIC Life reported fast growth of new business premiums, with NBV growth improving quarter by quarter. GWPs of CPIC Life amounted to RMB225.343 billion, up by 6.5%. Of this, new business premiums grew by 35.8%. CPIC Life realised RMB9.205 billion in NBV, down by 31.4%. Of this, NBV for the second half of the year grew by 13.5% from the same period of 2021. NBV margin stood at 11.6%, down by 11.9pt. OPAT of life insurance reached RMB30.835 billion, up by 9.1%.

Combined ratio of property and casualty business^{[note 1]} improved considerably, with rapid top-line growth. The combined ratio was 97.3%, down by 1.8pt. Of this, expense ratio stood at 28.9%, down by 0.4pt, and loss ratio 68.4%, down by 1.4pt. GWPs amounted to RMB172.583 billion, an increase of 11.6%. Of this, non-auto business grew by 18.8% and accounted for 43.2% of total property and casualty insurance GWPs, up by 2.6pt. Automobile insurance enhanced CRM capabilities, with improved customer retention; non-auto business achieved improvement in business quality, with emerging business lines such as liability insurance, health insurance and agricultural insurance maintaining rapid development.

Persisted in asset allocation based on profiles of liabilities, with resilient investment results in the face of great market volatility. The share of fixed income investments stood at 73.9%, down by 1.8pt from the end of 2021; that of equity investments 22.0%, up by 0.8pt, and of this, core equity investments^{[note 2]} accounted for 11.5% of total investment assets, an increase of 0.4pt from the end of 2021. Growth rate of Group investments' net asset value reached 2.3%, down by 3.1pt from 2021. Total investment yield was 4.2%, down by 1.5pt, with net investment yield of 4.3%, down by 0.2pt. Group AuM amounted to RMB2,724.230 billion, an increase of 4.7% from the end of 2021.

Stay focused on value and high-quality development. CPIC adapted to market conditions at different stages, made well-thought-out planning, and identified the best path of sustained value growth across economic cycles. For P/C insurance, CPIC pursued rapid business development on the basis of business quality improvement and sound underwriting profitability, and this business philosophy helped meet challenges of the auto insurance comprehensive reform, and seize opportunities of new energy vehicles and emerging business areas; on the life insurance front, in the face of slow-down of NBV growth, CPIC strived to diversify distribution channels with the agency channel at the core, which enabled the Company to capture opportunities of bancassurance; in the face of capital market volatility and deterioration of credit risk, CPIC adhered to asset allocation based on profiles of liabilities and across macro-economic cycles, with sound and resilient investment performance. At the same time, CPIC continuously optimised the KPI system, giving even more priority to value growth, with steady EV growth and sound return on assets.

Believe in the long-termism, base business philosophies on fortitude and altruism. CPIC thinks about the long term and the future when making choices. CPIC respects the inherent development patterns of insurance, makes sound strategic planning, explores new development drivers and prepares itself strategically for the future. CPIC launched the Changhang Transformation of life insurance business, rolled out the Amended Basic Law. Such measures were intended to resolve precisely the kind of short-termism in agency force management, drive for paradigm shift of the agency force development mode, and promote long-term cooperation, common development of the Company and agents. Since the inception of the transformation, the agency channel has shown encouraging signs, with steady improvement in core manpower productivity and income, and broad-based support for the direction of the reform, namely, career-based development, professionalism and digital empowerment. CPIC uphold sustainable development, implemented corporate social responsibility, pushed for integration of ESG philosophy into corporate values, and for integration of green insurance, green investment and green operation into business practices. In particular, CPIC built the social responsibility "spectrum" of CPIC Blue, CPIC Red, and CPIC Green, doing its part in promoting public welfare of the society.

Persisted in prudent business operation, always bearing in mind risks when doing business. CPIC balanced development and safety, ensuring a "secure footing" of the Company on the right path of development. The Company paid particular attention to leverage the board in strategic decision-making, continuously enhanced corporate governance in response to the call of the government to promote China's reform and development. CPIC entrenched "the first line of defense", pushing for closer integration of risk management and business activity, established Group-wide unified risk control policies and standards, with CPIC P/C, CPIC Life and CPIC Health maintaining leadership in overall risk control capabilities.

Looking forward, CPIC will firmly adhere to the vision of "industry leadership in healthy and steady development", respect the inherent development patterns of insurance, pursue progress and excellence while maintaining stability, enhance insurance service proposition and open a new chapter in high-quality development.

Notes:

1. Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK.

2. Stocks and equity funds included.

About China Pacific Insurance (Group) Co., Ltd

China Pacific Insurance (Group) Co. Ltd. (hereinafter referred to as "CPIC", or the "Group"; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) is an insurance holding company incorporated on the basis of China Pacific Insurance Company, which was established on May 13, 1991. It is a leading insurance group headquartered in Shanghai, which is the first insurance group simultaneously listed on Shanghai, Hong Kong and London Stock Exchanges. CPIC is a leading comprehensive insurance group; the Company provides a broad range of risk solutions, financial planning and asset management services to over 100 million customers via its nationwide network of distribution and diversified services platforms.

This press release is distributed by Wonderful Sky Financial Group for China Pacific Insurance (Group) Co. Ltd.