(Hong Kong, 30 Aug 2016) China Reinsurance (Group) Corporation (the “Group”, Stock code: 01508.HK) announced its 2017 interim business performance results. Upholding its position as the country’s reinsurance champion, and in line with its philosophy of ‘innovation-propelled development’, the Group’s achieved satisfactory and solid business results, spearheading the industry and continuing to gain momentum. In the first half of the year, the Group not only achieved several highlights in its business operations, but also scored breakthroughs in a number of fields.
According to the interim results, in the first half of 2017 the business performance of China Reinsurance (Group) Corporation was on a steady track. The Group’s insurance premium income has increased rapidly, realising an overall growth of 34.7%. A closer look at this growth shows that P&C reinsurance stabilised with its reinsurance premium income realising a year-on-year increase of 3.2%. In addition, facultative and overseas business operations showed promising momentum in terms of its development. Life reinsurance had a solid performance with a year-on-year increase of 64.2% in its reinsurance premium while P&C primary insurance saw sustainable growth of 18.4% compared with the previous year, exceeding overall market growth by 4.5%.
The performance of investment returns remained strong. Adhering to a stable, prudent and long-term investment philosophy, the Group enhanced its management of risk controls, increased investment revenue and realised an annualised total investment yield of 5.70% – an increase of 0.95 ppts from the year before, and an annualised net investment yield of 4.59%.
The Group’s net profit witnessed a strong rebound. In the first half of 2017, the net profit attributable to the parent company’s equity shareholders reached RMB 2,954 million, making it a year-on-year increase of 9.4%.
Fourthly, the Group reinforced its status in the industry, with leading market shares in the Chinese P&C reinsurance sectors; P&C primary insurance occupies a 3.53% of the market share - a growth of 0.14 ppts from last year, placing it among the top six in the industry. Meanwhile, the Group has retained sufficient solvency adequacy: the corporation’s core and aggregated solvency adequacy ratio both reached 199%; the Group’s aggregated solvency adequacy ratio was 563%, while those of China P&C Reinsurance, China Life Reinsurance, China Continent Insurance were 207%, 223% and 294%& respectively.
Since the announcement of China Reinsurance Corporation’s 13th Five-Year-plan, the Group has been consistently promoting its implementation. In the past six months, the Group has witnessed, in various business segments, the fruitful results of its “One-Three-Five” strategy formulated in the Five-Year plan. Active Implementation of broad Customer Strategies, strategic partnership agreements have been signed with provincial/municipal governments of Inner Mongolia, Tibet, Chongqing, and others, and are currently promoting agreements with a dozen more provincial governments. Initial Effect of New Stage Construction occurs, the Group have also been actively exploring ways to serve the “Belt and Road Initiative”, pushing forward the initiative’s community research. The Group’s subsidiary companies - China P&C Reinsurance and Huatai Insurance Agency & Consultant Service Ltd., participated in the construction of the information platform of Shanghai Inherent Defect Insurance (IDI) to further help build China’s catastrophe assurance system while the China Reinsurance Catastrophe Research Center was established in June. Great Efforts has been putting into the construction of Catastrophe system, the China Earthquake Risk and Insurance Laboratory was inaugurated by China Property Reinsurance Ltd. and catastrophe insurance programs have been launched in 13 cities. Embracing “Digital Chinare” Construction, and IT planning program was initiated, focusing on existing system optimisation and frontier technological applications. The NCR system (reinsurance’s core business system) has seen smooth progress. Zone’s cooperative development achieves substantial results, the establishment of an assets and liabilities coordination mechanism has greatly facilitated the development of China Life Reinsurance Co. Ltd.’s saving-type business sector. The corporation’s investment and insurance businesses cooperate closely with each other and have contributed substantially to the insurance premium income of China Continent Insurance Co. Ltd. International Business excavates high-quality business, P&C reinsurance premiums have achieved a rapid growth of 12% in the overseas business sector while the establishment of the Group’s subsidiary Singapore branch has been promoting business development across the greater Asia-Pacific market with the proportion of reinsurance premium income from Asian international businesses rising to 50.6% from last year’s 34.7%.
Committed to the principle of innovation-propelled development, the Group has achieved breakthroughs in a number of business aspects. To better serve the “Belt and Road Initiative”, the Group signed a strategic co-operation agreement with China’s security community and successfully launched its supporting products of kidnap & ransom insurance as well as accident insurance for overseas staff as part of the Group's efforts to build a national brand of "China Citizens and China Insurance". At the same time, the Group signed strategic partnership agreements with the China Meteorological Administration and China Earthquake Administration for comprehensive cooperation over data and technologies, actively exploring ways to build an industry database platform. The Group also began research into China’s own catastrophe mode, and accelerated the development of catastrophe-related products. In order to further help with the Group’s strategic restructuring, the reinsurance segment carried out a strategic formula of “Data + Technologies + Services”, seeking to look to the standards of primary insurance companies in terms of customer service and market competition awareness through a client manager system. The Group’s primary insurance segment launched a transformation to client-orientated business operation models, and its subsidiary company China Continent Insurance introduced a CICS programme (China Continent Insurance Core Strategy). With respect to product innovation, China P&C Reinsurance introduced China’s first-ever income insurance product in the form of “Insurance + Futures + Reinsurance” jointly with its primary insurance clients to further expand the scope of insurance coverage. This collaboration also led to the creation of China’s first comprehensive liability insurance for the application of new Materials, providing liability coverage for China’s new materials industry. In addition, China Continent Insurance introduced China’s first aircraft residual value insurance policy while China Life Reinsurance launched a 20-year retrospective programme of its personal insurance products, reviewed the development of its best-selling products both domestically and abroad, and supported its clients in developing wealth management insurance products. China Life Insurance as well helped clients with the development/upgrading of 14 insurance products, including critical illness and cancer insurance, plus middle-end medical care and principal-guaranteed insurance for self-driving travellers.
Looking forward to the second half of 2017, the Group will continue to operate in accordance with the requirements proposed in the framework of the National Financial Work Conference and those of the China Insurance Regulatory Commission while closely adhering to a philosophy of returning to the protection nature of insurance to further serve the economy. The Group will also continually seek effective development, market competitiveness and market compliance as we fully implemet the “One-Three-Five” strategy, which aims to accelerate the comprehensive business layout and achieve our annual business performance goals in order to smooth the path ahead for the year 2018.