On 28 March 2024, China Re held its 2023 Annual Results Press Conference. He Chunlei, Chairman, Zhu Xiaoyun, Board Secretary, Tian Meipan, Assistant President and Chief Actuary, as well as Wang Zhongyao, Deputy General Manager of China Re P&C, Li Xiaomin, Proposed President of China Continent Insurance, and Li Wei, General Manager of China Re AMC, attended the conference to give a detailed briefing on the Company’s operating performance and strategic implementation results in 2023 as well as its future development direction. The press conference, which was hosted by Zhu Xiaoyun and held in the form of off-line conference in Hong Kong, conference call and live streaming, has further enhanced the understanding on the Company’s mid- to long-term investment value in the capital market through in-depth communication and interaction with investors, analysts and domestic and foreign media.

　　In 2023, facing the complex and changing market environment, China Re focused on the strategic goal of building a “world-class comprehensive reinsurance group” and the “three-step” strategic arrangements, and adhered to the general tone of “seeking progress while ensuring stability, enhancing value”. As a result, written premiums grew steadily, underwriting profits hit new highs, and investment income grew steadily, comprehensively improving the quality and efficiency of serving national strategies. Moreover, digital transformation was accelerated, risk management and control were robust and effective, and business resilience and development quality were significantly enhanced, taking solid steps in terms of world-class construction as well as the first step in a new journey of high-quality development.

Chairman He Chunlei introducing the Company’s results and prospects

Operating results grew significantly

　　In 2023, China Re’s premium income grew steadily, continuously consolidating its market position. The Group’s consolidated gross written premiums amounted to RMB176,849 million, representing a year-on-year increase of 4.2%. The Group’s consolidated insurance revenue amounted to RMB99,755 million, representing a year-on-year increase of 11.8%. P&C reinsurance’s domestic market share grew for six consecutive years, and the gross written premiums of overseas business increased by 18.7% year-on-year. The life and health reinsurance’s business structure was continuously optimised, and its market share ranked first in the industry. In the meantime, the growth rate of primary premium income for the primary P&C insurance exceeded the market average.

　　China Re continued to optimise its profit structure, and underwriting performance was significantly improved. The Group’s consolidated underwriting profits hit a new high with a year-on-year increase of over 900%. The combined ratio of each business segment decreased year-on-year. Among them, the combined ratio of the domestic P&C reinsurance business was 99.53%, representing a year-on-year decrease of 0.23 percentage point; the combined ratio of the overseas P&C reinsurance business was 85.74%, representing a year-on-year decrease of 8.29 percentage points; the combined ratio of the protection-type life and health reinsurance business was 97.12%, representing a year-on-year decrease of 0.55 percentage point; and the combined ratio of the primary P&C insurance business was 100.78%, representing a year-on-year decrease of 2.28 percentage points.

　　China Re adhered to the philosophy of long-term investment and value investment, deepened the synergy of asset-liability management, and prudently optimised the asset allocation structure. The Group’s net investment yield was 4.28%, representing a year-on-year increase of 0.62 percentage point, continuously consolidating and enhancing its long-term revenue. The total investment yield was 2.77%, achieving steady improvement in refined management. The assets under management continued to grow, and the development of third-party business showed new development momentum.

　　Efforts were made to significantly improve the operating efficiency of China Re at both the underwriting and investment ends. The Group’s consolidated net profit attributable to shareholders of the parent company was RMB5,652 million, representing a year-on-year increase of RMB5,977 million. The weighted average return on equity (ROE) was 6.22%, representing a year-on-year increase of 6.58 percentage points. The dividend per share was RMB0.042, representing a dividend yield corresponding to the recent stock price of over 8%.

　　China Re’s risk management was stable and effective, and the aggregated solvency of all operating entities was adequate. In particular, it was 246% for China Re P&C, 215% for China Re Life, and 257% for China Continent Insurance, while the Group’s consolidated solvency was 191%. The Company continuously maintained an “A” rating from S&P Global Ratings and an “A (Excellent)” rating from A.M. Best with stable ratings outlook.

Comprehensive improvement in quality and efficiency of serving national strategies

　　China Re continuously implemented its philosophy of sustainable development, and focused on its main responsibilities and businesses, giving full play to its roles as an economic shock absorber and a social stabiliser. The Company effectively integrated its business development into the overall national strategic development, explored new business scenarios and growth points, and drove business development with innovation. In 2023, the sum insured for risks in the key national strategic areas amounted to RMB67 trillion, representing a year-on-year increase of 11.3%. The Company assisted the Healthy China strategy to serve 0.21 billion people, representing a year-on-year increase of 78.5%, and served 3.72 million micro, small and medium-sized enterprises, representing a year-on-year increase of 150.8%.

　　In terms of serving technology to become independent and strong, the Company implemented China’s first exclusive reinsurance contract for specialised and new enterprises, actively implemented and promoted cyber security insurance, and provided reinsurance protection for the first commercial flight of the domestic large aircraft C919 and key satellite launches in China.

　　In terms of serving green transformation and development, the Company supported the commercial operation of the world’s first fourth-generation nuclear power plant, and provided nearly RMB400 billion of full life cycle risk protection for green energy projects such as wind power and photovoltaics.

　　In terms of serving modernisation of social governance, the Company innovatively launched the index-type catastrophe insurance products, underwrote for domestic earthquake, flood and typhoon risk liabilities of RMB25.8 trillion, and acted as the main reinsurer in more than 80% of catastrophe pilot projects.

　　In terms of serving comprehensive rural revitalisation, the Company implemented the first exclusive reinsurance contract for rural revitalisation, fishing vessels and fisheries in China, and achieved full reinsurance coverage on the complete cost insurance and income insurance of the three main grain crops in the major grain-producing counties across the nation. The service provided guarantees for the construction of high-standard farmland in 16 provinces in China, with a market share of over 50%.

　　In terms of serving the co-building of “Belt and Road”, the Company provided risk protection of over RMB100 billion for hundreds of “Belt and Road” projects, including the Karot Hydropower Project, which was selected into the list of practical cooperation projects of the 3rd “Belt and Road” Forum for International Cooperation.

Accelerating digital transformation

　　In 2023, China Re iteratively optimised the “Digital China Re” strategy, and formed a new development pattern of “One Body with Two Wings” to inject strong momentum into high-quality development. The Company further improved the top-level design by establishing a digital transformation committee and a digital transformation office, officially released the digital transformation topology map and roadmap, completed the management upgrade of China Re Catastrophe and the formal operation of China Re DT, continued to accelerate digital intelligence, and sped up the construction of the Group’s data mid-end and business platform, using data to drive the Group’s management and control. In addition, the Company accelerated the construction of data standards and data governance systems to enhance the value of data assets; accelerated the construction of digital bases and information security systems to continuously consolidate the digital foundation; iterated the catastrophic portfolio risk management platform to achieve real-time catastrophic pricing and quantitative management; and put into operation the new accounting standards implementation project for the Group’s systems to enhance the level of refined business management. At the same time, the Company continued to deeply cultivate platform empowerment, iteratively upgraded a catastrophe model in China with independent intellectual property rights, and took the lead in the Ministry of Science and Technology’s national key research and development programme “Major Natural Disaster Prevention and Control and Public Security”. The Company also released the industry’s first “Zai • Yun” comprehensive agricultural insurance technology platform, upgraded the “Zai • Tu” new energy vehicle insurance pricing and risk control model, jointly expanded the application scenarios of blockchain trading platform with primary insurance companies, and drove the construction and promotion of IDI, safety and liability insurance platforms, transforming its technological first-mover advantages into market competitive advantages.

　　Looking to the future, in the face of opportunities and challenges, China Re will continuously adhere to the general tone of “seeking progress while ensuring stability, enhancing value” and the business philosophy of “expanding business scale, increasing underwriting profits and making prudent investment”. The Company will accelerate reform and innovation, strengthen quality improvement and efficiency enhancement, strive to take new steps in high-quality development, strive to demonstrate new achievements in serving national strategies, strive to make digital transformation a new engine, strive to achieve new results in risk control and compliance management, accelerate the construction of a world-class comprehensive reinsurance group, and strive to continuously create stable investment returns for shareholders.