China Pacific Insurance : CPIC 2024 INTERIM RESULTS ANNOUNCEMENT

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

2024 Interim Results Announcement China Pacific Insurance (Group) Co., Ltd. August 30, 2024 Overview In the first half of 2024, China's economy demonstrated positive momentum of recovery, with gradual unleash of its potential and continued improvement of resilience and sustainability. For the insurance market, customer needs upgrade and financial regulation improves, the industry faces important opportunity in the context of China's drive for modernisation with its own characteristics. In the face of both challenges and opportunities, especially given China's ambition to build itself into a "financial powerhouse", we stayed focused on insurance, persisted in value growth and long-termism, deepened transformation and delivered solid business results, with secure market standings and increased comprehensive strength. 3 Steady improvement of overall business performance with sustained growth of comprehensive strength (unit: RMB yuan) Group operating income 194.634bn +10.9 % Group EV 568.766bn +7.4 % Group OPAT Note1,2 19.738bn +3.3 % Group number of customers 181mn +0.8 % Group net profit Note1 25.132bn +37.1% Group AuM 3,263.010bn +11.7 % Notes: 1) Attributable to shareholders of the parent. 4 2) Figures for the same period of the previous year were restated. Maintained sound solvency positions under C-ROSS II Comprehensive Solvency Margin Ratio (Unit: %) 31 Dec. 2023 -6pt -5pt +6pt 30 Jun. 2024 257 251 210 205 214 220 Regulatory minimum 100% CPIC Group CPIC Life CPIC P/C Core Solvency Margin Ratio +2pt +4pt +9pt 171 173 117 121 164 173 Regulatory minimum 50% CPIC Group CPIC Life CPIC P/C 5 Group OPAT realised steady growth (unit: RMB million) Others and consolidation offsets Life insurance OPAT attributable to minority shareholders +3.3% 19,108 19,738 4,641 5,201 OPAT +1.8% OPAT 19,540 14,899 15,173 20,374 28,265 30,835 (432) (636) 1H 2023 1 ） 1H 2024 OPAT= Net profit - short-term investment volatility - adjustment of material one-off items 25,858 （ 4,287 ） （ 1,197 ） 20,374 （ 636 ） 19,738 1H 2024 Short-term Adjustment 1H 2024 OPAT 1H 2024 OPAT net profit investment of material OPAT attributable attributable to volatility 2) one-off to minority the parent items 3 ） shareholders Notes ： 1 ） Figures for comparative periods were restated. 2 ） Short-term investment volatility applies to business of CPIC P/C, CPIC Life and CPIC Health, etc., while excluding business based on VFA; it refers to the difference between actual investment income and long-term investment assumptions, while considering the impact of income tax. 3 ） Adjustment of material one-off items includes the difference between deductible amounts for pre-tax profit of the current period and the average deductible amounts for pre-tax profit of the preceding years. 6 4 ） Numbers may not add up due to rounding. Steady growth of Group embedded value(1/2) Group EV (unit: RMB million) +7.4% 529,493 568,766 31 Dec. 2023 30 Jun. 2024 7 Composition of EV as at 30 Jun. 2024 (unit: RMB million) 257,693 (5,442) (4,307) 568,766 320,822 Group adjusted VIF of CPIC Life Cost of Minority Group net worth before cost of required shareholders' EV required capital held capital share of CPIC Life's VIF Steady growth of Group embedded value(2/2) Movement of Embedded Value in 1H 2024 (unit: RMB million) 6,480 4,852 1,418 6,613 7,418 568,766 9,037 13,271 (3) (9,813) 529,493 Group EV as Expected NBV for 1H Investment Operating Change in Diversification Change in Shareholder Others Group EV as of the end return on 2024 experience experience methodology effect 1) market dividends of the end of 2023 EV variance variance assumption and value of June models adjustment 2024 Notes ： 1) Diversification effect refers to the impact on cost of required capital of new business and business change. 8 2) Numbers may not add up due to rounding. Key strategies in healthcare, integrated regional development and technology empowered insurance business and strengthened core competitiveness Healthcare Integrated regional development Technology Improved product/service offerings in response to changing customer needs and behaviours Developed " Ai Xin Bao " , a CI product, with increase in average SA Launched " Xin Fu Nian Nian " , an integrated elderly care solution, with new value proposition of "pension, home-based nursing, retirement communities and long-term care" CPIC Family Doctor rolled out 48 experience centres under Longevity Retreat Programme, innovated new mode of smart service Focused on key industries and projects with greater impact on regional development Expanded service ecosystem for HNW customers to meet diversified customer needs for risk protection and wealth management Came up with differentiated product/service solutions based on local endowments Enhanced cooperation with strategic accounts and built exemplary BBE business models Heightened use of new technology to improve digital and intelligent business management Put in place Group-wise data governance system, established data market and ecosystem management framework, promoted development of large models for insurance Digital Labour for IA performing an average of over 2,000 tasks per month and helped to unlock potential of digital empowerment. 9 Performance Analysis Attention : This is an excerpt of the original content. 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