On 30 March 2022, China Re Group held the 2022 Interim Results Press Conference. He Chunlei, the President, led the management team to give a detailed briefing on the Company’s overall performance and strategic implementation results in the first half of 2022. The press conference was held in the form of “conference call + live video”, and involved in-depth communication and interaction with analysts and investors, which has further enhanced the capital market’s attention and understanding on the Company.

　　In the first half of 2022, in the face of the complex and volatile operating situations, China Re Group maintained strategic focus and persisted in the overall operational strategy of “stabilising growth, adjusting structure, controlling risks and increasing profitability”. The premium income grew steadily, the business structure was continuously optimised, and the operation of each business segment was stable, which led to an effective and fruitful outcome in serving the national strategies.

Premium income grew steadily, business structure was continuously optimised

　　In the first half of 2022, China Re Group’s premium income grew steadily. The Group’s consolidated gross written premiums amounted to 87,980 million (in RMB, the same below), representing a year-on-year increase of 5.6%, and outperformed the average growth in the market. The market share of domestic P&C reinsurance and life and health reinsurance businesses remained stable, and the growth rate of domestic primary P&C insurance business stabilised and rebounded. The business structure was continuously optimised. The reinsurance premium income from domestic non-motor business of P&C reinsurance amounted to 15,853 million, representing a year-on-year increase of 42.1%. China Re vigorously seized the opportunities to deploy in the blue ocean market, and implemented 24 product innovation projects represented by cyber securities insurance and biological products (including vaccines) liability insurance, which enabled its advantages in emerging businesses to consolidate continuously. The gross written premiums of overseas business of P&C reinsurance amounted to 11,374 million, representing a year-on-year increase of 17.7%. China Re further expanded the scale of its businesses with prominent advantages, such as speciality insurance, political violence insurance, marine insurance and casualty insurance, and at the same time, actively explored the non-Lloyd’s market, achieving rapid growth in premium income. The reinsurance premium income from protection-type business of life and health reinsurance amounted to 13,506 million, representing a year-on-year increase of 12.6%. Chine Re launched a number of innovative products, including million coverage medical insurance for people with pulmonary nodules and long-term critical illness insurance for the elderly. The primary premium income from non-motor business of primary P&C insurance amounted to 12,319 million, representing a year-on-year increase of 9.2% and accounting for more than half for the first time.

Underwriting profits gradually improved and risk management continued to be stable

　　In the first half of 2022, China Re Group’s underwriting profits gradually improved. The combined ratio of primary P&C insurance business continued to improve in the past year, with a year-on-year decrease of 7.28 percentage points. Chaucer was able to achieve better underwriting profits in the context of prudent provision for Russian-Ukrainian conflict and losses arising from natural catastrophes, with a combined ratio of 96.34%. The Company’s risk management continued to be stable. China Re maintained its Long-Term Insurer Financial Strength Rating of “A” by S&P and Financial Strength Rating of “A (Excellent)” by A.M. Best, and the aggregated solvency adequacy ratios for all operating entities in the insurance segment stayed above 200%.

Innovation-driven business development led to an effective and fruitful outcome in serving the national strategies

　　China Re made every effort to help stabilise the economy. By launching comprehensive protection-type products such as “Heart-warming Insurance”, it provided risk protection of 69,500 million for more than 20,000 small and micro enterprises. It piloted high-standard farmland insurance products in multiple provinces, and it was the lead reinsurer for over 30% of the cargo logistics reinsurance contracts in the domestic market, ranking first in the market in terms of the number of contracts entered into as the lead reinsurer. For key groups such as new citizens and logistics personnel, it took the lead in providing risk solutions such as product development and underwriting and claim settlement.

　　Actively serving the green development strategy, China Re published the industry’s first pricing model for new energy vehicle insurance; released China’s first “Electrochemical Energy Storage Insurance Development Report” to create an integrated development model of “renewable energy + electrochemical energy storage technology + green insurance protection”; provided full-lifecycle risk protection for assets of nearly RMB500 billion of domestic nuclear power projects and reinsurance protection for more than 1,000 projects in the field of green energy such as wind power and solar power generation.

　　Vigorously serving the Healthy China strategy, China Re upgraded the coverage of Hui Min Bao, covering an addition of more than 23 million policyholders, enhanced its inclusive products and services, and innovated more than 10 inclusive insurance products such as million coverage medical insurance for people with pulmonary nodules, long-term critical illness insurance for the elderly and Hui Hu Bao. The investment layout in the medical care and health industry was also advanced, and the investment balance of fields related to Healthy China construction increased by 26.8% year-on-year.

　　Deeply connecting with the modernisation of national governance capabilities, China Re iteratively released the China Typhoon Catastrophe Model and the China Earthquake Catastrophe Model, with most of its indicators better than similar international models, realising domestic substitution and independent controllability, and continuously strengthening its core competitiveness in the field of catastrophe insurance. The China Earthquake Catastrophe Model 3.5 has been put into use in 4 government agencies and 22 insurance institutions, while its leading advantage in IDI insurance was further expanded, with a total platform coverage area exceeding 140 million square metres.

　　In the second half of 2022, China Re Group will adhere to the general tone of “making progress while ensuring stability and value creation”, unswervingly insist on “profitable development, market benchmarks, holding the bottom line of risk compliance and digital transformation”, and persist in the operational policy of “stabilising growth, adjusting structure, controlling risks and increasing profitability”, in order to continually serve the national strategies to help stabilise the economy, fully promote the Company’s stable operation, strengthen the overall management of the Group’s operation, continue to improve the comprehensive risk management system and push forward the implementation of Digital China Re 2.0 strategy. China Re Group will strive to advance high-quality development to create sustainable and stable investment returns for shareholders.