Progress amid Stability, Gearing up for Future
HONG KONG, March 28, 2022 /PRNewswire/ — China Pacific Insurance (Group) Co., Ltd. (“CPIC” or the “Company“; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) was pleased to announce the 2021 annual results of the Group on 27 March.
2021, in the face of increasing uncertainties of the market, CPIC persisted in high-quality development, focused on key areas and levers, pressed ahead with reform, strived to stabilise the fundamentals of business whilst focussing upon emerging high-potential areas, and achieved both stability and progress in business operation. The group’s operating income was 440.643 billion yuan, a year-on-year increase of 4.4%; the group’s operating profit attributable to the parent was 35.346 billion yuan, a year-on-year increase of 13.5%; the group’s embedded value was 498.309 million yuan, an increase of 8.5% from the end of the previous year; the group’s assets under management were 2,601.537 billion yuan, an increase of 6.8% over the end of the previous year; the number of group customers was 168.393 million, an increase of 13.1% over the end of the previous year.
The operating profit of Life Insurance continued to grow, and the growth of new business value continued to be under pressure. Income from Life Insurance business amounted to RMB211,685 million, representing a year-on-year decrease of 0.1%. Among them, the growth rate of new insurance regular payment through the agent channel was 11.6%; the value of new business was 13.412 billion yuan, a year-on-year decrease of 24.8%; the new business value rate was 23.5%, a year-on-year decrease of 15.4 percentage points; the Life Insurance operating profit was 28.265 billion yuan, a year-on-year increase of 9.2% ; The remaining marginal balance was 348.272 billion yuan, down 0.8% from the end of the previous year.
The comprehensive ratio of Property Insurance business was basically stable, and the quality of non-auto insurance business improved and maintained rapid growth. The combined ratio was 99.1%, a year-on-year increase of 0.1 percentage points. Among them, the comprehensive expense ratio was 29.3%, a year-on-year decrease of 8.2 percentage points; the comprehensive loss ratio was 69.8%, a year-on-year increase of 8.3 percentage points; the insurance business income increased by 3.3% year-on-year to 154.611 billion yuan. Among them, non-auto insurance business revenue increased by 16.8% year-on-year, and its proportion increased by 4.7 percentage points to 40.6%; auto insurance customer stickiness continued to increase, promoting the transformation of growth momentum; non-auto insurance achieved underwriting profit, while emerging health insurance, liability insurance, agricultural insurance and other emerging insurance Business areas maintained rapid growth.
Adhering to the asset allocation based on the characteristics of insurance liabilities and crossing the macroeconomic cycle, the investment performance was stable. Fixed income investments accounted for 75.7%, down 2.6 percentage points from the end of the previous year; equity investments accounted for 21.2%, up 2.4 percentage points from the end of the previous year, of which core equity accounted for 11.1%, up 0.9 percentage points from the end of the previous year; The growth rate of the Group’s net investment assets was 5.4%, a year-on-year decrease of 2.0 percentage points; the total investment yield was 5.7%, a year-on-year decrease of 0.2 percentage points; the net investment yield was 4.5%, a year-on-year decrease of 0.2 percentage points;The Group’s assets under management reached RMB 2,601,537 million, an increase of 6.8% over the end of the previous year; of which, the scale of third-party assets under management reached RMB 789,468 million, an increase of 0.2% over the end of the previous year.
Life Insurance initiated the Changhang Action Programme in an all-around way. CPIC Life took the lead in launching the reform of its agency channel in a bid to build a career-based, professional and digitalised agency force. The restructuring of sales team seeks to shift away from short-termism towards long-term development; CPIC undertook to put in place a new mode of value-oriented bancassurance, forging new partnerships with banks, optimising resource allocation and upgrading customer services; CPIC deepened integration of products and services, promoted deployment in health care and retirement, launched a health management programme of its own proprietary brand, rolled out 10 retirement community projects, with those in Chengdu and Dali opening for business, lending strong support to the core business of insurance.
P/C insurance continued to enhance capabilities for sustainable development. In the face of multiple challenges of automobile insurance comprehensive reform, reshaping of the supply chain, and rising risk of climate change, CPIC deepened the closed-loop business management based on customer segmentation, further enhanced capabilities of direct customer engagement and acquisition, and boosted differentiated business management, with continued improvement in on-line ratio of individual customers and auto insurance renewal rate; for corporate clients, the Company made further progress in professional capacity-building specific to industries and areas, leading in industry. CPIC responded to the flooding in He’nan in a timely manner, and offered professional and efficient claims service, winning recognition of the society.
CPIC demonstrated professionalism in asset management. Based on characteristics of insurance liabilities, the Company continued to optimise Strategic Asset Allocation (SAA) across macro-economic cycles, effectively controlled credit risk, seized market opportunities, and delivered solid investment results.
CPIC Service fully played an enabling role. CPIC established the institution of Service Officers, which enabled 800 employees from all levels to reach out to customers, so as to present a more tangible and accessible CPIC Service. In 2021, Group total customers increased by nearly 20 million in one year, with over 10 million individual customers holding policies from multiple subsidiaries of the Group, more than 4 times that of 5 years ago. CPIC Cloud entered the stage of large-scale production, providing high-level computing support for technological innovations, which in turn will lead to better customer experience in targeted customer acquisition, underwriting & pricing, and smart claims management.
Corporate governance paved way for long-term development. The Company fully leveraged the advantage of the board of directors in diversity, professionalism and international vision, enhanced capabilities in making strategic and forward-looking decisions, and solidified prudence and stability in corporate governance, winning recognition from many communities. The Company introduced ESG philosophies, completed the ESG top-level design and management structure, signed into UNEP FI Principles for Sustainable Insurance (PSI) and UN Supported Principles of Responsible Investment (PRI), marking a new chapter in sustainable development.
Looking ahead into 2022, the international environment will be fraught with even greater uncertainties, compounded by China’s demographic shift and cyclical factors such as economic re-balancing and industrial upgrading. People’s needs for a healthier and better life will continue to grow; customers expect more personalised and diversified insurance service. Technological innovation changes the traditional risk landscape, with a lot of emerging issues to be addressed. Financial regulation also requires enhanced business management and increased compliance on the part of insurers.
The Company believes that drastic changes of the environment more than before test the resolve of transformation. CPIC launched Transformation 2.0 5 years ago, instilled new elements of “embracing changes” into CPIC’s DNA. The next 30 years mark a new stretch of journey, which will continue to centre on customer needs, and this will elevate the Company onto a new level of high-quality development.
About China Pacific Insurance (Group) Co., Ltd
China Pacific Insurance (Group) Co. Ltd. (hereinafter referred to as “CPIC”, or the “Company”; 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.
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