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 OPATNote1,2
19.738bn +3.3%
Group number
of customers
181mn +0.8%
Group net profitNote1
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
4,6415,201
OPAT | +1.8% | OPAT | |||||||
19,540 | 14,899 | 15,173 | 20,374 | ||||||
28,265 | 30,835 | ||||||||
(432) | (636) | ||||||||
1H 20231） | 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 |
volatility2) | one-off | to minority | the parent | ||
items3） | 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%
529,493568,766
31 Dec. 2023 | 30 Jun. 2024 |
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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.
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Performance Analysis
Life Insurance(1/3)
Rapid NBV growth, with foundation of value growth further consolidated
Written Premiums | NBVnote |
Policy Persistency Ratio of
Individual Customers
(unit: RMB million)
(unit: RMB million)
(unit: %)
11
+0.3%
169,574 170,105
55,713 -11.8% 49,142
113,861 +6.2% 120,963
1H 20231H 2024 Renewed premiums New business premiums
Note: NBV grew by 29.5% on a comparable basis.
+22.8%
9,037
7,361
1H 2023 | 1H 2024 |
+1.5pt +7.6pt
96.991.7
13-month25-month
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