CPIC Achieved a Revenue of RMB255.1 Billion In 20221H, Improving its Margin and Adhering To the Long-Term Value
HONG KONG, Aug. 31, 2022 /PRNewswire/ -- On 28 August, the insurance giant China Pacific Insurance (Group) Co., Ltd. ("CPIC" or the "Group"; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) released its interim report of 2022. During the reporting period, CPIC adhered to the long-term value growth, focused on the core business of insurance, continuously pursued reform and transformation especially in key areas and levers, and striving for continued progress in high-quality development. The Group kept a steady growth of business results, secured market standings, sustained improvement of overall strength, further contributed to China's social and economic development, and had listed in the Fortune Global 500 for 12 consecutive years.
Improving quality and efficiency: steady growth in performance, marginal improvement and steady increase in value
As a leading integrated insurance group in China, CPIC, through its subsidiaries and along the insurance value chain, provided a broad range of risk protection solutions, wealth management and asset management services. In the first half of 2022, CPIC guided by "living in the sun and traveling in the light of light", insisted on serving the national strategy and the people's needs for a better life, assisted the sustainable development of the economy and society, steadfastly transformed and persisted in reform, and achieving a further breakthrough in business performance.
As of 30 June 2022, the Group realized a steady growth in insurance business income, reaching RMB242.5 billion, representing a year-on-year increase of 8.0%. The income of life insurance business of CPIC was RMB149.1 billion, up 5.4% year-on-year, and the growth rate of new insurance business was 25.8%, achieving a rapid growth. The insurance business revenue of CPIC was RMB91.6 billion, representing a year-on-year increase of 12.3%; Combined cost ratio of CPIC Property business improved year-on-year, with a combined cost ratio of 97.2%, down 2.1 percentage points year-on-year. Measured by primary insurance premiums, CPIC Life and CPIC Property are both China's 3rd largest insurers for life and property and casualty insurance, respectively. At the end of the first half of the year, the number of customers of the Group reached 170.13 million, representing an increase of 1.74 million over the end of the previous year.
In terms of profitability, the Group's operating profit attributable to owners of the parent increased by 9.9% year-on-year in the first half of the year; The operating profit of CPIC Life was RMB15.156 billion, representing a year-on-year increase of 6.0%. The company's embedded value was RMB509.078 billion, representing an increase of 2.2% over the end of the previous year, of which the effective business value was RMB213.114 billion, representing an increase of 1.0% over the end of the previous year. The margin was significantly improved and the value was fully displayed.
In 1H2022, the overall performance of CPIC's investment business was stable, thanks to its persistence in asset allocation through economic cycles and based on profiles of liabilities. The annualised net value growth rate of the Group's investment assets was 3.3%, the annualised total investment yield was 3.9%, and the annualised net investment yield was 3.9%; The 10-year average net investment yield, total investment yield and net growth rate all exceeded the embedded long-term investment return assumptions.
Innovation, reform and win-win cooperation should be carried out simultaneously, and ESG governance path should be thoroughly implemented
In 1H2022, CPIC effectively coordinated pandemic prevention and control and business development in a challenging market environment. On the one hand, multiple measures have been taken to strengthen online operation, and some office places and data centers have been turned into closed operation and production to ensure the safe and stable operation. Customer service, investment business and daily operation have been continuously improved. On the other hand, the Group will maintain its determination, continue to promote the established strategy of high-quality development, deepen the main business operation, and speed up the layout of the ecosystem.
CPIC will accelerate the release of development vitality with innovation. The Group continued to deepen the transformation of its main business model, accelerated the reform of personal insurance channels, focused on building a career-based, professional and digitalised agency force, consolidated and optimized the new bancassurance cooperation mode, and steadily improved the value contribution of bancassurance. CPIC Property will improve the construction of the business system for individual and corporate customers, actively seize the development opportunities of new energy, green and low-carbon, and rural revitalization, and consolidate new growth momentum. The Group will firmly promote the layout of the health and elderly care ecosystem, build a health and elderly care service ecosystem, and form differentiated service features. While serving the main business of insurance, CPIC will lay a foundation for building a second growth curve. Taking the construction of regions such as the Yangtze River Delta and the Greater Bay Area as an opportunity, CPIC will cultivate a regional innovation incubation mechanism, integrate resources to promote cross-company and cross-sector collaboration, and realize the further upgrade of customer value development.
Expanding space through cooperation and enhance synergies. The Group will give full play to the resource advantages of the comprehensive insurance group, deepen the internal and external collaborative management, constantly upgrade the cooperation mode, cooperation platform and cooperation energy efficiency, and create more development space. The Group will continue to deepen the strategic cooperation with leading companies in the industry such as Sequoia Capital China, Ruijin Hospital and New Frontier Vitality Limited, achieve strong alliances, complement each other's advantages, promote the effective connection of different industrial value chains, and strive to build and consolidate win-win symbiotic relationships. CPIC will actively advocate breaking internal barriers, improve internal cooperation mechanisms, guide the rational flow of key elements, and continuously enrich and optimize product and service portfolios based on customers' diversified and full-cycle needs, highlight the advantages of integrated services, and create and enhance synergistic value.
In addition, CPIC initiated the construction of ESG governance mechanism and joined influential international sustainable organizations, creating an important prerequisite for promoting the integration of sustainable development concepts into management practices. In the first half of this year, the Group's actions in sustainable insurance, responsible investment and its own low-carbon operations have been implemented one after another. The blueprint for sustainable development has become increasingly clear, and the ESG governance work has progressed smoothly with gratifying results.
In the long run, China remains one of the most dynamic and fastest-growing insurance markets of the world. Looking forward to the second half of the year, CPIC will continue to anchor its high-quality development direction, deepen its main business operations, promote the transformation of its development model from sales-driven to customer-demand-driven, continue to enhance its development momentum, continue to strengthen talent development, improve capabilities of CPIC Service, incorporate ESG sustainable development philosophies, enhance core competitiveness; ensure the prevention of major risks to safeguard long-term development.
About China Pacific Insurance (Group) Co., Ltd
China Pacific Insurance (Group) Co. Ltd. (hereinafter referred to as "CPIC", or the "Group"; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) is an insurance holding company incorporated on the basis of China Pacific Insurance Company, which was established on May 13, 1991. It is a leading insurance group headquartered in Shanghai, which is the first insurance group simultaneously listed on Shanghai, Hong Kong and London Stock Exchanges. CPIC is a leading comprehensive insurance group; the Company provides a broad range of risk solutions, financial planning and asset management services to over 100 million customers via its nationwide network of distribution and diversified services platforms.
This press release is distributed by Wonderful Sky Financial Group for China Pacific Insurance (Group) Co. Ltd.