China Re ranked among the world's Fortune 500 for the first time on Aug 2, coming in at number 497 with an operating income of $24.37 billion, ranking fourth among global reinsurance companies.
Being on list showcased China Re Group's achievements in reform and development during the 13th Five-Year Plan (2016-2020) and its growing comprehensive strength. In the 13th Five-Year Plan period, China Re Group implemented a high-quality development philosophy adhering to the high-quality Party building principles. Guided by the 13th Five-Year Plan strategy, the company actively fulfilled its mission as the national reinsurer, leading to a consolidated market status and a major breakthrough in strategic layout.
Strategy-oriented leapfrog development in comprehensive strength
Looking back at the early stage of the 13th Five-Year Plan period, China Re Group stood at a new historical crossroads at the time of its reform and development, which was a time suffused with challenges and opportunities.
In 2016, under the leadership of the new Party committee and after intensive research and repeated discussion, a consensus was finally drawn to form the "One Three Five" strategy. It defined the company's core business as reinsurance and the commitment to make breakthroughs in the three aspects of "innovation, collaboration and expansion" to achieve leaps in five areas of "scale, layout, technology, organization and culture".
In 2019, China Re Group put forward the strategy of taking "platform-building, technology development and globalization as the fulcrum in accelerating the transformation of high-quality development to realize the steady growth of overall value".
Guided by the 13th Five-Year Plan strategy, China Re Group maintained a good momentum of growth in key performance indicators during the 13th Five-Year Plan period, with a steady improvement in comprehensive competitiveness and brand influence.
China Re maintained a 24.3 percent share in the domestic P&C reinsurance market, and secured a share of over 50 percent in the domestic personal reinsurance market at the end of 2020.
Staying at the forefront of the insurance industry in terms of the return on investment, with a steady rise in market position, the company participated in the set-up of infrastructure such as life tables, critical illness tables, shipping insurance indexes and marine insurance risk curves, and continued to develop proprietary models for catastrophes such as earthquakes and typhoons.
With the acquisition of the Chaucer Group as a wholly-owned subsidiary, and the establishment of Singapore Branch, China Re Hong Kong Company, China Re Catastrophe Risk Management Company and other business institutions, the group has further improved the level of reinsurance specialization and the overall layout of the industry chain.
The company signed 48 domestic strategic cooperation agreements and 32 overseas strategic cooperation memorandums; China Continent Insurance introduced eight strategic investors raising approximately 10.6 billion yuan ($1.63 billion), Huatai Insurance Agency introduced China Energy Engineering Group as a strategic shareholder, and China Re Life strategically invested in MediTrust Health, showing remarkable results achieved in the strategic partnership ecosystem.
The "Digital China Re" strategy put online three core systems, and phased results have been achieved in the construction of data centers and business centers. China Re promoted the "reinsurance to primary insurance" and "product +, data +" strategies, delivering innovative products such as environmental pollution liability insurance, political violence insurance, terrorism insurance and other property insurance products, as well as multi-level personal protection products such as anti-cancer critical illness insurance and mid-range medical insurance.
Improved global competitiveness
The successful acquisition of Chaucer has opened a new chapter in the company's globalization layout. With overseas institutions covering 11 countries and regions, the group possesses a professional team of more than 500 people abroad, obtaining global pricing influence in political risk insurance, terrorism insurance, special energy insurance and nuclear insurance, laying a solid foundation for globalized development and domestic innovation.
During the 14th Five-Year Plan (2021-25), China Re Group will persist in seeking progress amidst stability and enhancing value to promote the Company's high-quality development and comprehensively build a world-class comprehensive reinsurance group with sustainable development capabilities and core competitiveness.
Adhering to reinsurance as the core, China Re will firmly perform the national reinsurance functions, advancing from disaster management, agriculture, green energy, health management, livelihood protection, environmental responsibility and other existing fields to smart city, network security, military-civilian integration and other new areas.
Adhering to innovation in leading development, the group will continue to improve core competitiveness, promote product innovation to a strategic height, and actively develop "personalized, differentiated and customized" products, taking "reinsurance + technology" comprehensive risk management services as a characteristic business model to effectively meet the customers' escalating demand for insurance protection, providing customers with one-stop, full-cycle products and services, and setting a benchmark for leading industry innovation.
In strengthening technology-driven empowerment, China Re will implement the "Digital China Re" strategy, accelerate digital transformation, quicken and promote the development of business and technology integration, highlight technology conversion rates, facilitate business innovation, improve operational efficiency, and empower industry development.
In promoting inside-outside interconnection, the company will closely follow the national Belt and Road Initiative and customers' needs for going global. Using overseas branches as fulcrums, China Re will bring out Chinese elements to continuously improve international influence, and bring in insurance products that are urgently needed in China such as political risks, network security, clean energy and business interruption to back feed the innovative development of the domestic financial market, comprehensively improving the global risk diversification capabilities, and effectively guarding the construction of the Belt and Road and the overseas interests of China.