Financial Performance - Total assets increased by 5.9% to RMB 449,688 million as of June 30, 2023, compared to RMB 424,732 million as of December 31, 2022[5] - Net profit surged by 464.8% to RMB 2,067 million in the first half of 2023, compared to RMB 366 million in the same period last year[6] - Net profit attributable to parent company shareholders surged by 331.5% to RMB 2.012 billion in the first half of 2023, driven by the implementation of new accounting standards and capital market changes[15] - Total assets grew by 5.9% to RMB 449.688 billion as of June 30, 2023, compared to RMB 424.732 billion at the end of 2022[16] - Net profit for the first half of 2023 was RMB 540 million for the group company, RMB 444 million for China Re Property Insurance, RMB 108 million for China Re Life Insurance, and RMB 219 million for China Continent Insurance[97] - Net profit attributable to the parent company's shareholders was RMB 2,011,676 thousand, compared to RMB 466,246 thousand in the first half of 2022[143] - Net profit attributable to parent company shareholders for the first half of 2023 was RMB 2.01 billion[149] Insurance Business - Insurance service revenue grew by 16.4% to RMB 48,466 million in the first half of 2023, compared to RMB 41,639 million in the same period last year[6] - Property reinsurance business revenue increased by 21.8% to RMB 19,986 million in the first half of 2023[8] - Life reinsurance business revenue rose by 35.0% to RMB 7,008 million in the first half of 2023[8] - Total premium income reached RMB 102.617 billion in the reporting period, representing a year-on-year growth of 16.6%[10] - Property reinsurance segment's insurance service revenue increased by 21.8% to RMB 19.986 billion in the first half of 2023, accounting for 40.3% of the group's insurance service revenue[17] - Domestic property reinsurance business premium income grew by 19.4% to RMB 24.311 billion in the first half of 2023, with a combined ratio of 99.65%, up 0.09 percentage points year-on-year[25] - Overseas property reinsurance and Chaucer business achieved a total premium income of RMB 13.923 billion in 2023, a 22.4% year-over-year increase, with a combined ratio of 88.45%, down by 8.05 percentage points[35][36] - The company's personal reinsurance division saw a 35.0% year-over-year increase in insurance service revenue to RMB 7.008 billion in the first half of 2023[49] - Domestic protection-type reinsurance business generated RMB 15.559 billion in premium income in the first half of 2023, a 15.2% year-on-year increase[58] - Domestic savings-type reinsurance business saw a remarkable 1,186.8% year-on-year growth in premium income, reaching RMB 14.237 billion in the first half of 2023[58] - Domestic financial reinsurance business experienced a 62.6% decline in premium income, dropping to RMB 5.077 billion in the first half of 2023[58] - Non-insurance business scale premiums reached RMB 5.080 billion in the first half of 2023, a 66.5% year-on-year increase[59] - Overseas savings-type reinsurance business premium income decreased by 57.4% to RMB 1.886 billion in the first half of 2023[61] - Other overseas business premium income surged by 447.1% to RMB 1.504 billion in the first half of 2023, mainly due to renewal premiums from overseas financial reinsurance business[61] - Contract reinsurance accounted for 99.9% of the total reinsurance premium income in both 2023 and 2022, with RMB 38.215 billion in 2023 and RMB 32.856 billion in 2022[62] - Life and health insurance accounted for 60.8% of the total reinsurance premium income, reaching RMB 23.279 billion, with a year-on-year growth of 16.8%[64] - Property insurance direct underwriting business achieved insurance service revenue of RMB 22.58 billion, a 7.8% increase year-on-year, accounting for 45.6% of the group's total insurance service revenue[65] - Motor vehicle insurance premium income grew by 2.6% year-on-year to RMB 12.499 billion, maintaining a stable market position[75] - Accident and short-term health insurance premium income surged by 29.5% year-on-year to RMB 6.768 billion, reflecting strong growth in non-motor insurance segments[74] - Cargo transportation insurance premium income grew by 39.1% year-on-year to RMB 780 million, indicating strong performance in niche markets[74] - Agricultural insurance premium income increased by 20.7% year-on-year to RMB 1.177 billion, reflecting the company's focus on high-growth sectors[74] - Accident and short-term health insurance premium income reached RMB 6.768 billion in the first half of 2023, a year-on-year increase of 29.5%[76] - Guarantee insurance premium income was RMB 2.601 billion in the first half of 2023, with a cumulative bad debt rate of 9.9% for personal consumer loan guarantee insurance, up 1.5 percentage points year-on-year but down 3.6 percentage points from the beginning of the year[76] - Liability insurance premium income increased by 11.2% year-on-year to RMB 2.304 billion in the first half of 2023[76] - Agricultural insurance premium income grew by 20.7% year-on-year to RMB 1.177 billion in the first half of 2023, with the company obtaining agricultural insurance operation qualifications in 32 provinces[76] - Cargo transportation insurance premium income rose by 39.1% year-on-year to RMB 780 million in the first half of 2023, driven by seasonal growth in online shopping return freight insurance[78] - Direct sales channel accounted for 36.2% of property insurance premium income in the first half of 2023, up from 33.1% in the same period last year[79] - Shanghai contributed 14.5% of the company's property insurance premium income in the first half of 2023, the highest among all regions[80] - The comprehensive cost ratio for property insurance business decreased to 100.86% in the first half of 2023 from 103.00% in the same period last year[81] Investment Performance - Total investment income nearly doubled, increasing by 99.7% to RMB 4,626 million in the first half of 2023[8] - Annualized total investment yield improved by 0.50 percentage points to 3.27% in the first half of 2023[8] - Investment income in the property reinsurance segment turned positive to RMB 161 million in the first half of 2023, compared to a loss of RMB 276 million in the same period last year[18] - Interest income in the property reinsurance segment increased by 12.9% to RMB 1.240 billion in the first half of 2023, compared to RMB 1.098 billion in the same period last year[20] - Earnings from investments in associates in the property reinsurance segment increased by 76.5% to RMB 180 million in the first half of 2023, due to higher profits from associated companies[23] - The company's investment income in the personal reinsurance division improved by 42.1% year-over-year, from a loss of RMB 1.107 billion in H1 2022 to a loss of RMB 641 million in H1 2023[53] - The company's interest income in the personal reinsurance division slightly decreased by 0.3% year-over-year to RMB 2.333 billion in the first half of 2023[52] - Investment income for the property insurance direct underwriting business increased by RMB 310 million to RMB 100 million, reversing a loss of RMB 210 million in the same period last year[69] - The company's total managed assets reached RMB 604.279 billion as of the end of the reporting period, with third-party managed assets growing by 146.1% year-on-year to RMB 251.695 billion[82] - Total investment assets amounted to 352.584 billion, with fixed income investments making up 80.3% of the total[84] - Domestic credit bond investments accounted for 16.98% of managed assets, with AAA-rated bonds comprising 98.43% of these investments[86] - Directly held domestic non-standard assets represented 6.71% of managed assets, with 80.12% rated AA+ or above[86] - The top three industries for non-standard asset holdings were transportation (26.42%), real estate (26.06%), and utilities (23.54%)[86] - The company holds a 3.93% stake in China Everbright Bank, which is expected to provide long-term, stable investment returns[88] - The company invested 3.089 billion in a property located in Shanghai's Pudong New Area, with 19,925.48 square meters designated for investment purposes[89] - The company's cash and short-term deposits stood at 14.249 billion, representing 4.0% of total investment assets[84] - Equity and fund investments totaled 71.722 billion, accounting for 20.4% of total investment assets[84] - The company's bond investments included 126.185 billion in corporate bonds, making up 35.8% of total investment assets[84] - The company's investment in government bonds was 14.210 billion, representing 4.0% of total investment assets[84] - Total investment income for the first half of 2023 reached RMB 4.626 billion, a year-on-year increase of 99.7%[92] - Net investment income for the first half of 2023 was RMB 6.990 billion, a year-on-year decrease of 1.9%[92] - Annualized total investment yield for the first half of 2023 was 3.27%, up 0.50 percentage points year-on-year[92] - Annualized net investment yield for the first half of 2023 was 3.96%, down 0.34 percentage points year-on-year[92] - The group company's investment return rate was 1.44%, with China Re Property Insurance at 1.31%, China Re Life Insurance at 1.50%, and China Continent Insurance at 0.96%[97] - The group company's comprehensive investment return rate was 1.49%, with China Re Property Insurance at 2.40%, China Re Life Insurance at 2.49%, and China Continent Insurance at 1.73%[97] Solvency and Capital - Core solvency adequacy ratio of China Re Group stood at 155% as of June 30, 2023, slightly down from 157% as of December 31, 2022[11] - Core capital of China Re Group increased by 11.6% to RMB 100.312 billion as of June 30, 2023[94] - Core solvency adequacy ratio of China Re Group decreased by 1 percentage point to 155% as of June 30, 2023[94] - Comprehensive solvency adequacy ratio of China Re Group decreased by 4 percentage points to 186% as of June 30, 2023[94] - Core solvency adequacy ratio of China Re Property & Casualty increased by 7 percentage points to 126% as of June 30, 2023[94] - Total assets of the group company reached RMB 88,180 million, with China Re Property Insurance at RMB 123,981 million, China Re Life Insurance at RMB 245,056 million, and China Continent Insurance at RMB 95,009 million[97] - The group company's net asset return rate (ROE) was 0.87%, with China Re Property Insurance at 2.10%, China Re Life Insurance at 0.55%, and China Continent Insurance at 0.90%[97] - The group company's total asset return rate (ROA) was 0.63%, with China Re Property Insurance at 0.38%, China Re Life Insurance at 0.05%, and China Continent Insurance at 0.24%[97] Strategic Initiatives - The company plans to focus on innovation, business structure adjustment, and investment capability enhancement to achieve high-quality development[108] - In property reinsurance, the company aims to deepen innovation-driven development and improve operational efficiency while balancing profit and business growth[108] - In life reinsurance, the company will leverage "data+" and "product+" strategies to expand protection-type reinsurance and explore opportunities in tax-advantaged health insurance and long-term care insurance[108] - For direct property insurance, the company will optimize business structure, enhance risk pricing, and improve cost control, especially in auto insurance[109] - The company will strengthen investment management and innovation capabilities, optimize asset allocation, and drive third-party asset management business growth[109] - The company adheres to the Corporate Governance Code and has complied with all applicable provisions during the reporting period[110] - All directors and supervisors confirmed strict compliance with the Standard Code of Securities Transactions during the reporting period[111] - The company is taking measures to comply with the Hong Kong Listing Rules regarding the number and composition of independent non-executive directors[112] - The company appointed Li Wenfeng as a non-executive director and Dai Deming as an independent non-executive director, effective from August 29, 2023[121] - He Chunlei was appointed as the Chairman of the 5th Board of Directors, and Zhuang Qianzhi was appointed as the Vice Chairman and President of the 5th Board of Directors on August 29, 2023[121] - The Board of Directors adjusted the composition of its specialized committees, including the appointment of Wang Xiaoya to the Audit Committee and Li Wenfeng to the Nomination and Remuneration Committee[122] - Zhuang Qianzhi was appointed as the President of the company on March 17, 2023, and ceased to serve as the Chief Risk Officer on July 7, 2023[124] - Lei Jianming was promoted from Assistant to the President to Vice President on March 30, 2023[124] - Tian Meipan was appointed as Assistant to the President and Chief Actuary on July 7, 2023[124] - Cao Shunming was appointed as Assistant to the President, Chief Compliance Officer, and Chief Risk Officer on July 7, 2023[124] Accounting and Financial Reporting - The company adopted new accounting standards, including IFRS 17 for insurance contracts, effective from January 1, 2023, which impacted the classification and accounting of insurance and investment contracts[158][160] - The company has adopted the new accounting standard IFRS 17 for insurance contracts starting from January 1, 2023, which includes the aggregation and recognition of insurance contracts and reinsurance contracts held[162][163] - Insurance contracts are grouped into portfolios based on similar risks and managed uniformly, with each portfolio further divided into three groups based on profitability at initial recognition[162] - Reinsurance contracts held are assessed separately from issued insurance contracts and are grouped into three categories based on net gains at initial recognition[163] - The company uses the concept of contract boundaries to determine future cash flows to be considered in measuring insurance contract groups[167] - Future cash flow estimates are adjusted for the time value of money and financial risks not included in the estimates, using current discount rates[164] - Non-financial risk adjustments are made to the present value of future cash flow estimates to reflect compensation for uncertainties in the amount and timing of cash flows due to non-financial risks[165] - The company adopted the International Financial Reporting Standard (IFRS) 17 for insurance contracts starting from January 1, 2023, which includes new accounting policies and revisions[169][170] - The insurance contract boundary is reassessed at each reporting date to reflect changes in the company's substantive rights and obligations, which may vary over time[169] - Insurance acquisition cash flows are defined as cash flows directly attributable to the corresponding portfolio of contracts and are allocated using a systematic and rational method[169] - For insurance contracts not measured using the premium allocation approach, the initial measurement includes the sum of fulfillment cash flows and the contractual service margin (CSM)[170] - The CSM represents the unearned profit the company expects to recognize as it provides services under the contract group[170] - Subsequent measurement of insurance contract groups includes the sum of the unearned liability and the incurred claims liability, with adjustments for changes in fulfillment cash flows[172] - The CSM is adjusted for changes related to future services, interest accrued, and any currency exchange differences[173] - Changes in fulfillment cash flows related to future services include adjustments for premiums received, changes in estimates of future cash flows, and changes in risk adjustments for non-financial risks[174] - The premium allocation approach is generally used for contracts with a coverage period of one year or less, or when it is expected to yield results not materially different from the non-premium allocation approach[175] - The company adopted the International Financial Reporting Standard No. 17 (IFRS 17) for insurance contracts starting from January 1, 2023, which includes new accounting policies for initial and subsequent measurement of insurance contracts[177][178] - The unearned premium liability is measured at the initial recognition of each contract group by deducting any insurance acquisition cash flows allocated to the contract group from the premiums received at the initial recognition date[176] - The unearned premium liability increases due to any premiums received and amortization of insurance acquisition cash flows, and decreases due to insurance acquisition cash flows paid, insurance service revenue recognized, and any investment components paid or transferred to the incurred claims liability[178] - The company recognizes a loss in the income statement and increases the unearned premium liability if there is an indication of a loss in the contract group during the coverage period[178] - The company measures the liability for incurred claims as the amount of fulfillment cash flows related to incurred claims, discounted at the current interest rate[178] - For reinsurance contracts held, the company uses the same accounting policies as for insurance contracts not measured under the premium allocation approach, with modifications[179] - The carrying amount of reinsurance contracts held at each reporting date is the sum of the unearned premium asset and the incurred claims asset[179] - The company adjusts the contract service margin for reinsurance contracts held if the reinsurance contracts are entered into before or at the same time
中国再保险(01508) - 2023 - 中期财报