China Pacific Insurance : CPIC 2024 Interim Report

About this update from China Pacific Insurance (group) Co., Ltd. Class A

中国太平洋保险（集团）股份有限公司 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. (A joint stock company incorporated in the People's Republic of China with limited liability) 2024 Interim Report (Trading Symbol ： CPIC) CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Contents   Important information 3 Corporate information and definitions 5 Business overview 8 Chairman's statement 12 Operating results 16 Highlights of accounting and operation data 16 Review and analysis of operating results 18 Embedded value 48 Corporate governance 58 Report of the Board of Directors and significant events 58 Changes in the share capital and shareholders' profiles 68 Directors, supervisors and senior management 71 Corporate governance 74 Environmental and social responsibilities 81 Other Information 86 Documents available for inspection 86 Financial Reports   Cautionary Statements: Certain statements included in this report, including future plans and development strategies, are not historical facts and are "forward-looking".Forward-looking statements are based upon various assumptions, including, without limitation, the management's examination of historical operating trends, data contained in its records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and which are beyond its control, and the Company may not achieve or accomplish these expectations, beliefs or projections. The occurrence or non- occurrence of an assumption could cause the Company's actual financial condition and results to differ from or fail to meet expectations expressed or implied by, such forward-looking statements. None of the Company or its management can guarantee or give any assurance to investors regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments. Investors and other related parties are advised to be mindful of the risk, and be aware of the difference between the Company's plans or projections and its commitments. Such forward-looking statements speak only as at the date on which they are made and are not intended to give any assurances as to future results. You are advised to exercise caution and should not rely on the forward-looking statements in this report. 2 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Important information I. The Board of Directors, the Board of Supervisors, the directors, the supervisors and the senior management of the Company warrant that the contents of this interim report are true, accurate and complete and that there is no false representation, misleading statement or material omission in this interim report; and they severally and jointly accept responsibility for the contents of this interim report. The Company's 2024 Interim Report was considered and approved at the 5th session of the 10th Board of Directors on 29 August 2024, which 13 Directors were required to attend and 11 of them attended in person. Due to other business engagements, directors LIU Xiaodan and John Robert DACEY did not attend the board meeting and appointed in writing directors JIANG Xuping and CHIN Hung I David respectively to attend the meeting and vote on their behalf. For the purposes of the United Kingdom's Financial Conduct Authority's Disclosure Guidance and Transparency Rule 4.1.12(3), each of the Directors of the Company named in the section "Directors, supervisors and senior management" of this report, to the best of his or her knowledge, confirm that: (1) the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (2) the interim report includes a fair view of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that the Company faces. III. The 2024 Interim Financial Report of the Company has not been audited. IV. Mr. FU Fan (person in charge of the Company), Mr. ZHANG Yuanhan (principal in charge of accounting and chief actuary) and Ms. XU Zhen (head of the Accounting Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this interim report. V. The Company did not propose to distribute any profit, nor did it transfer any capital reserves to share capital for the reporting period. 3 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report VI. The Company was exposed to various risks, including insurance risk, market risk, credit risk, liquidity risk, operational risk, reputational risk, strategic risk, capital management risk and other Group specific risks. For details of the risks that the Company may face, please refer to the section "Review and analysis of operating results" of this report. VII. There were no non-operating funds misappropriated by major shareholders or related parties of the Company. VIII. The Company did not provide external guarantees in violation of the prescribed decision- making procedures. CHINA PACIFIC INSURANCE (GROUP) CO., LTD. BOARD OF DIRECTORS 4 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Corporate information and definitions Legal Name in Chinese: 中国太平洋保险（集团）股份有限公司 ("中国太保") Legal Name in English: CHINA PACIFIC INSURANCE (GROUP) CO., LTD. ("CPIC") Legal Representative: FU Fan Board Secretary: SU Shaojun Securities Representative: CHEN Haozhi Contact for Shareholder Enquiries: Investor Relations Dept. of the Company Tel: +86-21-58767282 Fax: +86-21-68870791 Email: [email protected] Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Registered Office: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Office Address: 1 South Zhongshan Road, Huangpu, Shanghai, PR China Postal Code: 200010 Website: http://www.cpic.com.cn Email: [email protected] Selected Newspapers for Disclosure (A Share): China Securities, Shanghai Securities and Securities Times Announcements for A Share Published at: http://www.sse.com.cn Announcements for H Share Published at: http://www.hkexnews.hk Announcements for GDR Published at: http://www.londonstockexchange.com Report Available at: Investor Relations Dept. of the Company Stock Exchange for A Share Listing: The Shanghai Stock Exchange Stock Name for A Share: 中国太保 Stock Code for A Share: 601601 5 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Stock Exchange for H Share Listing: The Stock Exchange of Hong Kong Limited Stock Name for H Share: 中國太保 Stock Code for H Share: 02601 Stock Exchange for GDR Listing: London Stock Exchange Stock Name for GDR: China Pacific Insurance (Group) Co., Ltd. Trading symbol for GDR: CPIC Accountant (A Share): Ernst & Young Hua Ming LLP Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China Signing Certified Public Accountants: GUO Hangxiang, WANG Ziqing Accountant (H Share): Ernst & Young Hua Ming LLP (Recognised PIE Auditor) Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China Accountant (GDR): Ernst & Young Hua Ming LLP Office address: Level 17, Ernst & Young Tower, Oriental Plaza, No.1 East Changan Ave. Dongcheng District, Beijing, PR China Signing Certified Public Accountants: GUO Hangxiang 6 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Definitions In this report, unless the context otherwise requires, the following terms shall have the meanings set out below: "The Company", "the   Group", "CPIC" or "CPIC China Pacific Insurance (Group) Co., Ltd. Group"   "CPIC Life" China Pacific Life Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd. "CPIC P/C" China Pacific Property Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group)   Co., Ltd. "CPIC AMC" Pacific Asset Management Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd. "CPIC HK" China Pacific Insurance Co., (H.K.) Limited, a wholly-owned subsidiary of China Pacific   Insurance (Group) Co., Ltd. "Changjiang Pension" Changjiang Pension Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co.,   Ltd. "CPIC Fund" CPIC Fund Management Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd. "CPIC Anxin Agricultural" Pacific Anxin Agricultural Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group)   Co., Ltd. "CPIC Health" Pacific Health Insurance Co., Ltd., a subsidiary of China Pacific Insurance (Group) Co., Ltd. "CPIC Capital" CPIC Capital Company Limited, a subsidiary of China Pacific Insurance (Group) Co., Ltd. "CPIC Technology" Pacific Insurance Technology Co., Ltd., a wholly-owned subsidiary of China Pacific Insurance   (Group) Co., Ltd. "C-ROSS II" China Risk Oriented Solvency System Phase II "CBIRC" Former China Banking and Insurance Regulatory Commission "CSRC" China Securities Regulatory Commission "NFRA" National Financial Regulatory Administration "SSE" Shanghai Stock Exchange "SEHK" The Stock Exchange of Hong Kong Limited "LSE" London Stock Exchange "PRC GAAP" China Accounting Standards for Business Enterprises issued by Ministry of Finance of the   People's Republic of China, and the application guide, interpretation and other related   regulations issued afterwards "New Accounting Standards" The Accounting Standard for Business Enterprises Nos. 22, 23, 24, 37 and 25 promulgated   and revised by the Ministry of Finance of the People's Republic of China in 2017 and 2020   sequentially "Articles of Association" The articles of association of China Pacific Insurance (Group) Co., Ltd. "Hong Kong Listing Rules" The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited "Model Code for Securities Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix Transactions" C3 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong   Limited "Corporate Governance Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Code" Securities on The Stock Exchange of Hong Kong Limited "SFO" The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) "Substantial Shareholder" Has the meaning given to it under the Securities and Futures Ordinance (Chapter 571 of the   Laws of Hong Kong), being a person who has an interest in the relevant share capital of the   Company, the nominal value of which is equal to or more than 5% of the nominal value of   the relevant share capital of the Company "GDR" Global depositary receipts "ESG" Environmental, Social and Governance "RMB" Renminbi "pt" Percentage point 7 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Business overview Key indicators                 Unit: RMB million Insurance revenue - CPIC Life 41,835 -2.4%         Insurance revenue - CPIC P/C 93,076 +4.2% Group embedded value Group operating income 568,766 +7.4% 194,634 +10.9%                 NBV margin of life business 18.7% +5.3pt Underwriting combined ratio NBV of life business           note 1 9,037 +22.8%     of P/C business     97.1%   -0.8pt             Group total investment yield note 2 2.7% +0.7pt         Group net investment yield note 2 1.8% -0.2pt Group OPAT attributable to Group comprehensive     shareholders of the parent note 3 investment yield note 2     19,738   +3.3% 3.0% +0.9pt                   Group net profit     CPIC Life 205% -5pt     CPIC P/C 220% +6pt attributable to shareholders Group comprehensive of the parent     solvency margin ratio 25,132 +37.1%     251%   -6pt   Group AuM     Group number of customers     ('000)       3,263,010 +11.7%               181,310 +1,441           Notes: Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK. Net/total investment yield, or comprehensive investment yield was not annualised. Figures for the same period of the previous year were restated. 8 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report Core competitiveness We are a leading integrated insurance group in China. We are committed to value growth and long-termism, stay focused on the core business of insurance, and steadfastly pursue high- quality development. We have achieved steady growth of business results, stable market standings, sustained improvement of overall strength, with increased contribution to the real economy and people's well-being in China. Focus We stay focused on the core business of insurance, boast diversified business segments along the insurance value chain, with enhanced capabilities in professional insurance business operation. Our life/health insurance business persists in long-termism, deepens integration of insurance products and services based on customers' need and strives to improve its customer service capabilities in an all-around way; presses ahead with channel diversification strategy with the agency channel at its core, and delivers steady improvement in channel value creation. The property and casualty insurance business is committed to serving the New Development Pattern and improving the risk reduction system. Automobile insurance business steps up customer resources management (CRM), optimises the business model of new energy vehicles; non-auto insurance business diversifies the offering of technology insurance and green insurance to boost the new quality productive forces. As for investment, we adhere to prudent, value, long-term and responsible investing, improve ALM mechanisms, continuously strengthen the asset allocation framework across economic cycles compatible with profiles with liabilities, so as to contribute to steady value growth of the Company. Prudence Committed to prudent business operation, we continuously improve the corporate governance structure with legal entities shouldering the primary responsibility, and optimise corporate governance mechanisms with coordination and checks and balances between the management, the Board of Directors, the Board of Supervisors and the Shareholders' General Meeting, in accordance with rules and policies which clearly define their respective roles and duties. We establish and refine the performance evaluation and incentive system balancing the short term and long term, development and risk management, which cements the foundation of sustainable development. We put in place a risk management system covering risk governance, risk strategies and management of major risk categories, continue to improve risk management 9 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. 2024 Interim Report rules and policies, enhance integrated risk control, foster an enabling corporate culture for risk control and compliance, so as to ensure sustainable and healthy development of the Company. Innovation We are customer oriented and forge ahead with transformation & innovation in a bid to foster new drivers for high-quality development. The health care strategy centres on the "Healthy China Initiative" and national retirement finance strategies, provides differentiated, personalised product/service solutions in response to changing customer needs and behaviours, and continuously enhances the supply of health services and elderly care. The strategy in integrated regional development departs from local endowments and differentiated positioning, focuses on key industries and projects, deepens synergy of life and P/C insurance business, coordination of assets and liabilities, and integration of products and services, with greater impact on regional development. The big data strategy embraces "Digital Finance", establishes and improves the Group-wise data governance system, diversifies the scenarios of digital empowerment, promotes the development of large models for insurance, accelerates R&D of hallmark applications such as Digital Employees, so as to facilitate high-quality development of the Company. Responsibility We leverage insurance as "a cushion of economic shocks" and "a social stabiliser" to serve national strategies and improve people's well-being. We are committed to the "5 Priorities" of financial services, i.e., technology finance, green finance, inclusive finance, pension finance, and digital finance, so as to create sustained value for employees, customers, shareholders and the society. We enhance the system of consumer rights protection, with increased visibility of "Responsible, Smart and Caring" CPIC Service. We provide employees with access to an innovative learning platform, step up training and coaching of young talent, and optimise organisational management in a bid to enhance the sense of fulfilment, belonging and satisfaction among employees. We are committed our corporate social responsibilities, stepping ESG mechanisms and enhancing the supply of green insurance in order to facilitate sustainable social and economic development of China. We continue to strengthen investor communication, improve transparency in information disclosure, maintain stable and prudent shareholder dividend levels so that shareholders can benefit from the growth of the Company. 10 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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