People's Insurance Co. (group) Of China Ltd. Class A · SSE:601319
People's Insurance Co. (group) Of China Ltd. Class A — The People's Insurance Company (Group) of China — H1 2024 Earnings Presentation
33 slides from People's Insurance Co. (group) Of China Ltd. Class A's earnings presentation, Aug 28, 2024
Slide 1: 2024 Interim Results Announcement
2024 Interim Results Announcement PICC Group 601319.SH PICC Group 1339.HK PICC P&C 8 =—.2328.HK
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the People’ s Insurance Company (Group) of China Limited (the “Company” ). No representation or warranty, expressed or implied, is given as to the fairness, accuracy, completeness or correctness of any information contained herein and they should not
Slide 3: Terminology
Terminology j New Accounting Standards:The Group has implemented the Accounting Standards for Business Enterprises No.25 - Insurance Contracts (Cai Kuai [2020] No.20), the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments (Cai Kuai [2017] No.
Slide 4: Results Overview
Results Overview
Slide 5: Results Overview
Results Overview Insurance Revenue Original Premiums _Net Profit Attributable to Equity Holders ROE Income of the Company 261.63bn RMB 427.29bn RMB 23.40bn RMB 9.3% 46.0% +3.3% +13.7% +0.7pp P&C Insurance Life & Health Total Investment Yield The Boards Suggested an combined ratio New Business Value
Slide 6: Serving Modern Industry
Serving Modern Industry Promoted the comprehensive insurance service program for industrial parks, providing risk coverage of 17.4 trillion yuan for 127,000 enterprises. Serving Green Development Green insurance provided risk coverage of 112tn RMB. The number of New Energy Vehicle underwritten incre
Slide 7: Rapid Growth in Insurance Service Revenue; Steady Increase in Asset Scale
Rapid Growth in Insurance Steady Increase in Service Revenue the Scale of Assets +The growth rate of the Group's insurance * The insurance AUM reached 1.5tn service revenue was 2.7PP faster than that of RMB, with an increase of 6.9% from the original insurance premiums. . P the beginning of the year
Slide 8: Operating Profitability Further Improved
Operating Profitability Further Improved ehlgg Industry-leading Underwriting Performance © PICC P&C Combined ratio was 96.2%, outperformed industry O PICC Life New Business Value +91.0% } Growth mate leas 5 PICC Health New Business Value +159.0% — keyindustry players fae Stabilized Investment Return
Slide 9: Innovative Reforms Further Deepened
Innovative Reforms Further Deepened B Innovation in Insurance Products =| Innovation in Business Model * Vigorously promote risk reduction services ¢ 981 New Products ¥ Upgraded the "Wanxiang Cloud" platform, launch ° 7.8bn RMB Premiums Income 8 Wanxiang series tool products, launch 15 various risk
Slide 10: Technological Development Further Accelerated
Technological Development Further Accelerated Strengthened the top-level design for digital development, formulated an action plan for digital construction, deployed a series of digital "no-regret" projects, and built core technological competitiveness. Infrastructure Development Advanced e Launched
Slide 11: Risk Prevention and Control Further Strengthened
Risk Prevention and Control Further Strengthened Implementing a comprehensive risk management action plan Building a systematic and thorough risk management system Interest Margin Risk nq lad + PIGC Life effectively managed the interest margin loss risk, with a 74 BP decrease in liability costs. + T
Slide 12: Comprehensively Strengthening ESG Management
¢ Comprehensively Strengthening ESG management Improve Top-Level Design Drafted a green finance development plan ~> Signed UNPSI Prioritized Social Responsibility Strengthening Green Finance Promoting Green Operation © Green insurance coverage +16% ©Investment for serving green development reached 9
Slide 13: Segment Overview
P Segment Overview EE
Slide 14: P&C: Results Highlights
P&C: Results Highlights Insurance Revenue Original premiums Net Profit Net Asset income 235.84bn RMB 312.0bn RMB 18.49bn RMB 242.84bn RMB +5.1% +3.7% Strong profitability +4,9% Combined Rate TANT Reserres The Boards Suggested an Interim Cash Dividend 96.2% 190.05bn RMB Per 10Shares 2.08RIVIB Outperf
Slide 15: Auto Insurance
Auto Insurance Structural Optimization Number of Insured +6.5% Household Vehicles 40.67mn Number of Newly Insured +5.2% Household Vehicles 3.49mn Household vehicles premium +0.9PP contribution Improvement in Customer Management Number of Vehicles +6.1% Underwritten 49.43mn Percentage of third-party
Slide 16: Auto Insurance
Auto Insurance Rapid Growth in New Energy Vehicle Insurance Strong Profitability Combined Ratio Underwriting Profit (bn) -0.3PP +13.3% Number of Vehicle Insured was 4.5mn Premiums Income reached 19.66bn RMB Market Share of Commercial Insurance Premium was 35% 9, ; ; 2023H1 2024H1 2023H1 202401
Slide 17: Non-Auto Insurance Stable Business Development
Non-Auto Insurance 2 Stable Business Development G| Achieved Profitability . . @ Agriculture Insurance feience and Technology & individual Business Combined Ratio 95.8% Premiums +3.4% + Coverage rate of high-tech + Premiums +16.3% i: i enterprises 23.7% + Combined Ratio more seen 100% Combined Ratio
Slide 18: Solid Capital Strength
Solid Capital Strength w Net LAE Reserve (bn) G Net Cash Flow from Operating Activities 21.25bn RMB + 5.8% 190.05 g Core Comprehensive Solvency Ratio Solvency Ratio = 205% 229% 20231231 20240630
Slide 19: PICC Life: Business Value Increased
PICC Life: Business Value Increased + 91.0% | +5.4PP Half Year New Business Value New Business Value Margin (bn) 2023H1 2024H1 2023H1 2024H1 + 32.8% Embedded Value (bn) 126.23 20231231 20240630
Slide 20: Business Structure Optimized
Business Structure Optimized +10.9PP Percentage of Renewal Premiums 55.8% +6.2PP Percentage of Regular Premiums 78.6% +3.9PP 13-Month Premium Persistency Ratio 96.0% +6.5PP 25-Month Premium Persistency Ratio 90.1% +53.5% Growth rate of First-year Regular Premi ‘ums with Premiums Paid Period More Tha
Slide 21: The Individual Channel
1 The Individual Channel: Prioritizing High-Quality Recruitment and Development * Monthly average effective agents+4.9% * Monthly average diamond agents+5.0% * 13-month qualified retention rate for new recruits +4.3PP * Proportion of highly educated agents +2.0PP * Monthly average effective agents o
Slide 22: Pension Plans and Elderly Care Sector
+ 66.1% +81.5% First-year Premiums for Commercial Premiums for Individual Pension Plans (bn) Pension Plans (mn) 2023H1 2024H1 2023H1 2024H1 The market ranking for individual pension premiums continues to hold the leading position Breakthrough in the Elderly Care Sector The Layout of Elderly Care Eco
Slide 23: PICC Health: Business Development Continues to Improve
PICC Health: Business Development Continues to Improve + 7.4% sh ; Capacity for "Health Insurance + Health Management" Services Original Premiums Income (bn) Constantly Enhanced 33.73 Newly expanded premiums for +72.6% large-scale commercial group insurance projects exceeding Imn Health Management B
Slide 24: Quality Elevated
Quality Elevated + 159.0% Half Year New Business Value (bn) RAI 2023H1 2024H1 +28.4% Embedded Value 20231231 (bn) 28.89 20240630 +17.0% First-Year Regular Premium for Long-Term Insurance (bn) 2023H1 2024H1 24
Slide 25: Development of Ecosystem Expedited
Development of Ecosystem Expedited Promoting Ecosystem Construction Jointly Established “Zhongshan-PICC Multi-disciplinary Consultation Center” with Zhongshan Hospital, Fudan University. Jointly Established the “Cloud Clinic” with Shanghai Renji Hospital Effectively Boosting the Integration of Medic
Slide 26: Total Insurance Investment Assets
Total Insurance Investment Assets 67 1,531.8bn RMB “li +6.9% Third-Party Asset Management Z~ 1,076.5bn RMB un Surpass ltn Proportion of equity Asset Management: Steady Growing&Prudent Portfolio Insurance Investment Portfolio @ Fixed-Income Investment @ Equity Investments at Fair Value © Others Propo
Slide 27: Fixed-Income, Equity and Alternative Investment
“~ th Fixed-Income Investment -Achieved balance between “stable returns” and “extended duration” Seized opportunities for allocating long duration treasury bonds and government bonds Proportion of treasury bonds and government bonds 21.1% +5.2PP compared to the beginning of the year A) \ Equity Inve
Slide 28: Stable Investment Performance, Effectively Controlled Investment Risks
Stable Investment Performance, Effectively Controlled Investment Risks Annualized yield for fixed-income Total Investment Return OCI Equity Investment Yield securities 48% 19.5% 12.4% Annualized Total Investment Yield 9023H1 2024111 4.1% OCT Yield on Market Value CSI 300 Dividend Index 28
Slide 29: Priorities for Latter Half of the Year
Implement Solid Strategic Service * Deepen the supply-side reform of insurance products Strengthen insurance supply in new fields Play a leading role in serving national strategic Strengthen innovation- driven development * Provide effective risk reduction services * Accelerate the development of he
Slide 30: Q&A
O&A
Slide 31: Appendix: Differences between CAS and IFRS
Appendix: Differences between CAS and IFRS Net Profit Attributable to Equity Holder of the (RMB mn) Net Assets Attributable to Equity Holder of the Company Item Jan-Jun, 2024 Jan-Jun, 2023 Jun. 30, 2024 Dec. 31, 2023 Under CAS 22,687 19,881 253,020 242,355 Items and adjustments under IFRS: Catastrop
Slide 32: Appendix: Key Financials of PICC Group (CAS)
Appendix: Key Financials of PICC Group (CAS) (RMB mn, unless otherwise noted) 2024H1 Insurance Revenue 261,629 Of which: PICC P&C 235,841 PICC Life 10,576 PICC Health 13,786 Total profit 34,969 Net profit attributable to equity holders 22,687 EPS (RMB) 0.51 Weighted average return on equity 9.0% Tot
Slide 33: Appendix: Key Financials of PICC Group (IFRS)
Appendix: Key Financials of PICC Group (IFRS) (RMB mn, unless otherwise noted) 2024H1 Insurance revenue 261,629 Of which: PICC P&C 235,841 PICC Life 10,576 PICC Health 13,786 Total profit 36,348 Net profit attributable to equity holders 23,400 EPS (RMB) 0.53 Weighted average return on equity 9.3% To
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