On 31 March, China Re held its 2024 Annual Results Press Conference, which was attended by Zhuang Qianzhi, the President, Tian Meipan, Assistant to President, Chief Actuary and Financial Controller, Liu Yuanzhang, Assistant to President and Board Secretary, Wang Zhongyao, General Manager of China Re P&C, Li Xiaomin, President of China Continent Insurance and Zhai Qingfeng, President of China Re AMC. At the conference, the operating results for 2024, implementation performance of strategies as well as future development direction of the Company were presented. Liu Yuanzhang was the host of the conference, which was conducted in a hybrid mode of physical meeting in Hong Kong with conference call and live streaming. The conference 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.

Comprehensive Improvement in Operating Results

  In face of the complex external environment in 2024, China Re focused on its strategic goal of building a “world-class comprehensive reinsurance group” and adhered to the general tone of “seeking progress while ensuring stability, enhancing value”, accelerating reform and development. Fruitful outcome was yielded from the Company’s high-quality development, as there was comprehensive improvement in the overall operating results with increasing competitiveness and global influence.

  In 2024, consolidated gross written premiums of China Re amounted to RMB178,483 million, representing a year-on-year increase of 0.9%; consolidated insurance revenue amounted to RMB101,363 million, representing a year-on-year increase of 1.6%; net profit attributable to equity shareholders of the parent company amounted to RMB10,557 million, representing a year-on-year increase of 86.8%; return on equity (ROE) was 10.74%, representing a year-on-year increase of 4.52 percentage points; and dividend per share was RMB0.050, representing a year-on-year increase of 19.0%. Pursuant to calculation under the China Accounting Standards for Business Enterprises, the Group’s consolidated gross written premiums and net profit attributable to equity shareholders of the parent company both reached a record high since the 13th Five-Year Plan.

  Continued Optimisation of China Re’s Profit Structure with Sustained Enhancement in Underwriting Efficiency

  The Group achieved a record high consolidated underwriting performance with a year-on-year increase of over 170%. All operating segments achieved underwriting profits. In particular, the combined ratio of domestic P&C reinsurance business was 99.86%; combined ratio of overseas P&C reinsurance business was 89.38%; combined ratio of L&H reinsurance protection-type business was 96.80%; and combined ratio of primary P&C insurance business was 99.66%. 

  Significant Growth in Investment Income through Adherence to Long-term, Value-oriented and Robust Investment Philosophy

  The Group’s total investment income amounted to RMB17,389 million, representing a year-on-year increase of 86.9%; total investment yield was 4.83%, representing a year-on-year increase of 2.06 percentage points. The comprehensive investment yield of its domestic shares exceeded the benchmark of the CSI 300 Index by more than 600 basis points; and the comprehensive investment yield of its overseas shares exceeded the benchmark of the Hang Seng Index by more than 500 basis points, demonstrating significant excess returns.

  Robust and Effective Risk Management Ensuring Adequate Aggregated Solvency of All Operating Entities

  The aggregated solvency adequacy ratio was 225% for China Re P&C; 208% for China Re Life; 285% for China Continent Insurance; and 194% for the Group as a whole. The Group maintained an “A” rating from S&P Global Ratings for 11 years and an "A (Excellent)" rating from A.M. Best for 15 years with stable ratings outlook.

Enhancement in Quality and Efficiency in Serving National Strategy

  Leveraging the core strength of its main responsibilities and businesses in reinsurance, China Re gave full play to its roles as an economic shock absorber and a social stabiliser by supporting industrial transformation, public welfare protection and social governance. In 2024, China Re achieved over 15% growth in insured coverage across all “five key areas” of finance services, with inclusive insurance serving more than 200 million people and over 10 million micro, small and medium-sized enterprises.

  Supporting the development of the national catastrophe insurance system. China Re released China’s Flood Catastrophe Model 2.0 and developed China’s Catastrophe Risk Map. It served as the lead reinsurer in nearly 80% of catastrophe insurance pilot projects and supported clients in creating policy-oriented, all-in-one catastrophe insurance solutions. Comprehensive, all-hazard, wide-coverage and long-term catastrophe insurance programmes were implemented in Hebei and Hubei provinces. In addition, China Re hosted catastrophe risk comprehensive governance seminars, published specialised monographs on China’s catastrophe risk governance, and collaborated with government agencies and industry associations to jointly advance the high-quality development of catastrophe insurance.

  Supporting national strategies to address climate change. China Re establisheda climate change response leadership group, issued special plans, and launched China Re Climate Risk Research Centre. China Re completed the typhoon climate change physical risk stress-testing tasks commissioned by the People’s Bank of China. It developed an independent intellectual property rights-based climate change physical risk (typhoon) stress-testing model and executed typhoon risk stress-testing initiatives for Hainan province. In addition, China Re co-hosted the first Baihuashan Meteorological Forum with the China Meteorological Administration in promoting meteorological risk transfer and risk mitigation management.

  Supporting reinsurance market development. China Re P&C, China Continent Insurance, and Huatai Insurance Agency established presence at Shanghai International Reinsurance Centre, with active participation in the development of trading platforms and business rule formulation for the Centre. China Re co-hosted the Shanghai International Reinsurance Conference to share domestic and international reinsurance market insights and outlooks. It also published annual reports on China’s reinsurance industry development for the third consecutive year.

  Dedicating efforts in the “Five Key Areas” of finance services. China Re launched China’s first artificial intelligence technology-enabled insurance product. For the 26th consecutive year, it served as the chairman unit of China Nuclear Insurance Pool, which is the largest in the world in terms of aggregate underwriting capacity. It also developed the “Hui” series of inclusive health insurance products, covering over 13 million people annually.

  Supporting “Belt and Road” initiatives. China Belt and Road Reinsurance Pool provided risk protection for 64 key programmes and major projects, totaling nearly RMB80 billion in coverage. China Re also underwrote the South Korea Offshore Wind Power Project, supporting Chinese enterprises in establishing large-scale offshore wind energy assets abroad. Leveraging Chaucer’s expertise and experience, risk protection against political violence and terrorism was offered to Chinese-funded overseas projects.

Accelerated Digital Transformation

  In light of the new requirements in the digital economy era, China Re continued to upgrade its “Digital China Re” strategy, driving the transformation of operating model and service model with digitisation technologies to create a new engine for development.

  Improving top-level design. China Re refined the digital transformation topology map and roadmap to improve the strategic layout of its digital transformation. The management of China Re CRM was upgraded while China Re DT was established, fostering the key layout with the “two wings” in technology. China Re issued a three-year plan to enhance its data management capacity and released China Re Data Standard Version 1.0, which underlined the preliminary construction of its data governance system. In addition, an index system was designed and a mechanism established for the evaluation of digital transformation.

  Deepening technology empowerment. The Group’s data mid-end and business platforms were launched for operation, improving data-driven decision-making capabilities. There were regular upgrades of China Re Catastrophe Portfolio Risk Management System (CREST), with the implementation of both insurance and reinsurance applications within its self-developed risk control model. In addition, “Lingshanjie” AI platform was created for China Continent Insurance, empowering innovative solutions across 9 core business scenarios. The construction of the integrated cybersecurity border and defense system was also completed, contributing to the continuous enhancements in the Group’s security capabilities.

  Enriching the platform ecosystem. There were regular upgrades of the earthquake, typhoon, and flood catastrophe models, thereby improving the overall catastrophe model lineage. Upgrades were also introduced to the “Zai˙Yun” agricultural insurance technology platform, empowering 11 insurance companies in the product innovation and risk assessment of agricultural index insurance. The life insurance intelligent comprehensive risk control platform also received upgrades, supporting over 20 client companies in intelligent underwriting and claims settlement. The “Zai˙Tu” new energy vehicle insurance platform was also upgraded, along with the launch of “Zai˙An” cybersecurity insurance platform to enable new business development.

  Looking forward, in the face of the ever-changing market situation, China Re will continue to adhere to the general tone of “seeking progress while ensuring stability, enhancing value” and uphold the operational approach of “expanding business scale, increasing underwriting profits and making prudent investment". With a focus on strengthening the functional role of reinsurance, promoting high-quality development, enhancing its core capacities and reinforcing risk control and compliance management, the Company is set to stride towards a new phase of high-quality development.

  Link to original text:  [http://www.chinare.com.cn/zhzjt/441147/gsxw/2025040108391545031/index.html]