Core Viewpoint - The insurance industry is increasingly adopting FVOCI accounting for high dividend stocks to stabilize profit reports and enhance long-term dividend income [2][5][10] Group 1: FVOCI Accounting Adoption - FVOCI accounting allows insurance companies to measure financial assets at fair value without impacting annual profit reports, thus stabilizing profit volatility [2][5] - As of June 2023, major insurance companies have significantly increased their FVOCI equity asset holdings, with Xinhua Insurance's FVOCI equity assets rising from 30.64 billion to 37.47 billion yuan and China Life's FVOCI stock holdings reaching 140.26 billion yuan, accounting for 22.6% of its total stock investments [2][3] - The implementation of new accounting standards in 2026 is expected to further drive the allocation of insurance capital into FVOCI stocks [2][4] Group 2: Investment Strategies - Insurance companies are focusing on high dividend stocks, particularly in sectors benefiting from policies aimed at reducing competition and improving cash flow amid inflation [3][6] - The strategy includes identifying stocks with improved cash flow and dividend potential through bottom-up research methods [3][6] - The shift towards FVOCI is also aimed at addressing the mismatch between asset and liability durations, with many companies experiencing a duration gap of 4-7 years [6][10] Group 3: Market Dynamics and Challenges - The rise of FVOCI has led to a "double-edged sword" effect, where significant unrealized gains from FVOCI assets do not appear on profit statements, potentially obscuring the true performance of insurance companies [9][10] - This shift in accounting practices allows for a more stable assessment of insurance companies' core business performance, enhancing investor confidence [10] - The focus on long-term dividend income is changing the investment logic of insurance companies, moving away from short-term capital gains to a more stable income approach [10]

Investment Rating - The report maintains an "Overweight" rating for the insurance industry [1] Core Insights - In August, the life insurance sector experienced a strong premium growth of 49.7% year-on-year, significantly up from July's growth rate [4] - The report anticipates a gradual decline in premium growth rates post-September, as the surge in August is attributed to the "stop炒" effect of old products amid a backdrop of lowered preset interest rates [4] - The health insurance sector's premium growth remained stable at 2.6% year-on-year in August, with a long-term growth potential identified through the integration of health management and insurance services [4] - The property insurance sector saw a modest premium growth of 0.9% in August, primarily impacted by a decline in non-auto insurance premiums [4] - The report highlights that leading insurance companies maintain robust growth and quality in their business, particularly in auto insurance, where lower loss ratios enhance profitability [4] - The valuation of the insurance sector remains at historical lows, with expected PEV ratios between 0.57-0.85 and PB ratios between 1.02-2.16 for 2025, indicating significant upside potential [4] Summary by Sections Life Insurance - August's life insurance premiums reached CNY 4,645 billion, marking a 49.7% year-on-year increase, with a cumulative premium of CNY 37,999 billion for the first eight months of 2025, up 11.3% year-on-year [4] - The report notes a shift towards dividend insurance products as a response to the changing interest rate environment [4] Health Insurance - Health insurance premiums in August grew by 2.6%, with a cumulative growth of 2.4% for the first eight months of 2025 [4] - The report emphasizes the potential for health insurance to expand through a comprehensive health ecosystem [4] Property Insurance - Property insurance premiums in August increased by 0.9%, with a cumulative growth of 4.7% for the first eight months of 2025 [4] - The report indicates that the growth in auto insurance premiums is supported by the rising penetration of new energy vehicles [4] Market Outlook - The report suggests that both liability and asset sides of the insurance companies are improving, with a favorable outlook for the industry as a whole [4] - The anticipated recovery in long-term interest rates could alleviate pressure on investment yields for insurance companies [4]

[Company Profile](index=2&type=section&id=Company%20Profile) The company, established in October 1949, is China's first national insurance company and has grown into a leading comprehensive insurance and financial group - The company, China's first national insurance company, was established in October 1949 and has become a leading large-scale comprehensive insurance and financial group[4](index=4&type=chunk) - The company was listed on the Hong Kong Stock Exchange (H-share code: 1339) in December 2012 and on the Shanghai Stock Exchange (A-share code: 601319) in November 2018[4](index=4&type=chunk) - Ranked **141st** in the 2025 Fortune Global 500, an increase of **17 places** from the previous year[4](index=4&type=chunk) - The company's business covers property and casualty insurance (PICC Property and Casualty, PICC Hong Kong), life insurance (PICC Life Insurance), health insurance (PICC Health Insurance), asset management (PICC Asset Management, PICC Capital, PICC Investment Holdings, PICC Pension), reinsurance (PICC Reinsurance), and technology services (PICC Technology)[5](index=5&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section provides fundamental details about the company, including its legal name, registered address, and stock exchange listings - The company's legal Chinese name is China People's Insurance Group Co., Ltd., abbreviated as PICC Group, with Ding Xiangqun as the legal representative[9](index=9&type=chunk) - The company's registered and office address is 88 West Chang'an Street, Xicheng District, Beijing, China[9](index=9&type=chunk) - A-shares are listed on the Shanghai Stock Exchange (stock name: PICC, code: 601319); H-shares are listed on The Stock Exchange of Hong Kong Limited (stock name: PICC Group, code: 1339)[9](index=9&type=chunk) [Definitions](index=5&type=section&id=Definitions) This chapter defines key terms used throughout the report, including major entities and regulatory bodies - This section provides definitions for commonly used terms in the report, including "the Company", "PICC", "PICC Property and Casualty", "PICC Life Insurance", "PICC Asset Management", and other major entities and their abbreviations[11](index=11&type=chunk) - It also defines relevant regulatory bodies such as "Ministry of Finance", "National Council for Social Security Fund", "China Securities Regulatory Commission", and "National Financial Regulatory Administration"[11](index=11&type=chunk) [1. About Us](index=6&type=section&id=1.%20About%20Us) This section provides an overview of the company's performance and key operational highlights for the reporting period [1.1 Performance Highlights](index=6&type=section&id=1.1%20Performance%20Highlights) In the first half of 2025, the Group's total assets, total liabilities, and total equity all grew by 6.3%, with net assets per share increasing proportionally; insurance service revenue rose by 7.1%, net profit and net profit attributable to parent company shareholders increased by 14.8% and 14.0% respectively, and both earnings per share and weighted average return on net assets significantly improved Key Financial Position Indicators | Indicator | June 30, 2025 (million yuan) | December 31, 2024 (million yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,878,102 | 1,766,321 | 6.3 | | Total Liabilities | 1,487,464 | 1,398,900 | 6.3 | | Total Equity | 390,638 | 367,421 | 6.3 | | Net Assets Per Share (yuan) | 6.47 | 6.08 | 6.3 | Key Performance Indicators | Indicator | January-June 2025 (million yuan) | January-June 2024 (million yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Insurance Service Revenue | 280,250 | 261,629 | 7.1 | | Net Profit | 36,155 | 31,489 | 14.8 | | Net Profit Attributable to Parent Company Shareholders | 26,671 | 23,400 | 14.0 | | Earnings Per Share (yuan) | 0.60 | 0.53 | 14.0 | | Weighted Average Return on Net Assets (unannualized) (%) | 9.5 | 9.3 | Up 0.2 percentage points | [1.2 Operating Highlights](index=6&type=section&id=1.2%20Operating%20Highlights) The Group achieved double-digit growth in net profit and net profit attributable to the parent company in the first half of 2025, proposing an interim cash dividend increase of 19.0%; business scale grew steadily, with insurance service revenue and original premium income both increasing, and investment asset scale exceeding 1.7 trillion yuan; comprehensive strength enhanced, with high solvency ratios maintained; operating efficiency across business segments continuously optimized, property and casualty insurance market share remaining first, life insurance new business value significantly growing, and investment returns substantially improving; the Group actively served national strategies, provided substantial risk protection, and made significant progress in technology, green, inclusive, pension, and digital finance; additionally, the Group focused on risk reduction services, enhanced disaster prevention, mitigation, and relief capabilities, significantly boosted brand value, accelerated digital construction, and effectively responded to external risk challenges [1.2.1 Steady Growth in Operating Performance, Continuous Improvement in Dividend Payout](index=6&type=section&id=1.2.1%20Steady%20Growth%20in%20Operating%20Performance%2C%20Continuous%20Improvement%20in%20Dividend%20Payout) The Group achieved robust operating performance with double-digit net profit growth and proposed a significant increase in interim cash dividends - In the first half of 2025, the Group achieved a net profit of **36.155 billion yuan**, a year-on-year increase of **14.8%**; net profit attributable to parent company shareholders was **26.671 billion yuan**, a year-on-year increase of **14.0%**[15](index=15&type=chunk) - The Group plans to distribute an interim cash dividend of **0.75 yuan** (tax inclusive) per 10 shares for 2025, a year-on-year increase of **19.0%**[15](index=15&type=chunk) [1.2.2 Steady Business Scale Growth, Continuously Enhanced Comprehensive Strength](index=7&type=section&id=1.2.2%20Steady%20Business%20Scale%20Growth%2C%20Continuously%20Enhanced%20Comprehensive%20Strength) The Group demonstrated steady growth in business scale and continuously strengthened its comprehensive capabilities, with significant increases in insurance service revenue, premium income, and investment assets - In the first half of 2025, insurance service revenue reached **280.250 billion yuan**, a year-on-year increase of **7.1%**; original premium income was **454.625 billion yuan**, a year-on-year increase of **6.4%**[17](index=17&type=chunk) - As of June 30, 2025, the Group's investment asset scale exceeded **1.7 trillion yuan**, an increase of **7.2%** from the beginning of the year[17](index=17&type=chunk) Group Solvency Indicators | Indicator | June 30, 2025 (billion yuan) | Increase from year-end (%) | | :--- | :--- | :--- | | Group Total Assets | 1,878.102 | 6.3 | | Net Assets | 390.638 | 6.3 | | Comprehensive Solvency Ratio (%) | 276 | - | | Core Solvency Ratio (%) | 219 | - | [1.2.3 Steady Progress in High-Quality Development, Continuous Optimization of Operating Efficiency](index=7&type=section&id=1.2.3%20Steady%20Progress%20in%20High-Quality%20Development%2C%20Continuous%20Optimization%20of%20Operating%20Efficiency) The Group achieved steady progress in high-quality development, optimizing operating efficiency across its property and casualty, life, health, and investment segments - PICC Property and Casualty maintained its industry-leading market share of **33.5%**, with a combined ratio of **94.8%**, a year-on-year decrease of **1.4 percentage points**[18](index=18&type=chunk) - PICC Life Insurance's new business value for the half-year increased by **71.7%** year-on-year on a comparable basis; regular premium income accounted for **79.5%** of original premium income, a year-on-year increase of **0.9 percentage points**[18](index=18&type=chunk) - PICC Health Insurance's new business value for the half-year increased by **51.0%** year-on-year on a comparable basis; first-year regular premium income increased by **52.3%** year-on-year[18](index=18&type=chunk) - Investment business achieved total investment income of **40.758 billion yuan**, a year-on-year increase of **40.2%**; annualized total investment yield was **5.0%**, a year-on-year increase of **0.9 percentage points**[18](index=18&type=chunk) [1.2.4 Serving National Development Strategy, Demonstrating State-Owned Enterprise Responsibility](index=8&type=section&id=1.2.4%20Serving%20National%20Development%20Strategy%2C%20Demonstrating%20State-Owned%20Enterprise%20Responsibility) The Group actively served national development strategies, providing substantial risk protection and making significant contributions across various financial sectors - In the first half of 2025, the Group provided risk protection totaling **1,780 trillion yuan**, a year-on-year increase of **6.9%**; investment scale serving the "Five Key Financial Initiatives" reached **264.9 billion yuan**, an increase of **12.4%** from the beginning of the year[20](index=20&type=chunk) - In technology finance, the Group established the first national technology achievement and intellectual property appraisal center, underwrote **127.1 thousand high-tech companies**, and AI capability calls increased by **27.2%** compared to the end of 2024[21](index=21&type=chunk) - In green finance, the number of new energy vehicles underwritten increased by **36.8%** year-on-year, and green finance investment scale increased by **13.6%** year-on-year[21](index=21&type=chunk) - In inclusive finance, the Group undertook **1,373 major illness insurance and other policy-based health insurance projects**, covering over **1 billion person-times**; insurance coverage for three major grain crops reached **337 million mu**[21](index=21&type=chunk) - In pension finance, second-pillar annuity management scale reached **678.3 billion yuan**, third-pillar commercial pension management assets grew **twofold** from the beginning of the year, and individual pension premium income increased by **177.4%** year-on-year[21](index=21&type=chunk) [1.2.5 Dedicated to Risk Reduction Services, Enhancing Disaster Prevention, Mitigation, and Relief Capabilities](index=9&type=section&id=1.2.5%20Dedicated%20to%20Risk%20Reduction%20Services%2C%20Enhancing%20Disaster%20Prevention%2C%20Mitigation%20and%20Relief%20Capabilities) The Group is committed to building a comprehensive risk reduction service value chain, enhancing disaster prevention, mitigation, and relief capabilities through proactive measures and rapid response - The Group built a full-process risk reduction service value chain, strengthening pre-insurance risk surveys, issuing **1.914 million digital risk survey reports**, achieving full coverage of digital risk surveys for corporate businesses[22](index=22&type=chunk)[23](index=23&type=chunk) - Enhanced in-insurance warnings, providing **28.145 million risk reduction services** for individual customers and **4.492 million services** for corporate customers[23](index=23&type=chunk) - In the first half of 2025, the Group activated over **70** first, second, and third-level claims emergency responses, effectively handling multiple major disaster accidents[23](index=23&type=chunk) [1.2.6 Establishing a Positive Corporate Image, Significantly Enhancing Brand Value](index=10&type=section&id=1.2.6%20Establishing%20a%20Positive%20Corporate%20Image%2C%20Significantly%20Enhancing%20Brand%20Value) The Group has successfully cultivated a positive corporate image, leading to a significant enhancement in its brand value and improved customer satisfaction - Ranked **141st** in the 2025 Fortune Global 500, marking its **16th consecutive year** on the list[24](index=24&type=chunk) - In the "Brand Finance Global 500 2025" ranking, brand value improved by **10 places** to **150th**, and brand strength improved by **20 places** to **85th**[24](index=24&type=chunk) - In the first half of 2025, consumer complaints across the Group decreased by **24.0%** year-on-year, and **ten cases** won the "2025 Financial Consumer Protection and Service Innovation Case" award[24](index=24&type=chunk) [1.2.7 Accelerating Digital Transformation, Strongly Supporting Strategy Implementation](index=11&type=section&id=1.2.7%20Accelerating%20Digital%20Transformation%2C%20Strongly%20Supporting%20Strategy%20Implementation) The Group is accelerating its digital transformation, optimizing computing resources, enhancing data management, and fostering intelligent technology innovation to support strategic implementation - Optimized computing resource deployment, steadily advancing the construction of the western data center, with the northern center achieving the insurance industry's first dual certification for a national financial data center[25](index=25&type=chunk) - The Group's data resource management coverage reached **95.7%**, actively promoting the unified Group BI tool, accelerating the release of data element value[25](index=25&type=chunk) - Strengthened intelligent technology innovation, upgraded the Group-level AI intelligent platform, introduced various mainstream foundation models, and increased the number of invention patent applications across the Group by **55.3%** compared to the same period last year[25](index=25&type=chunk) [1.2.8 Coordinated Response to External Risk Challenges and Resolution of Existing Risks, Building a Solid Foundation for Safe Development](index=12&type=section&id=1.2.8%20Coordinated%20Response%20to%20External%20Risk%20Challenges%20and%20Resolution%20of%20Existing%20Risks%2C%20Building%20a%20Solid%20Foundation%20for%20Safe%20Development) The Group effectively coordinated its response to external risk challenges and resolved existing risks, maintaining a stable risk appetite and preventing major risk events - In the first half of 2025, the Group's risk appetite execution remained generally stable, with no major risk events occurring, demonstrating significant achievements in risk prevention and control[26](index=26&type=chunk) - PICC Property and Casualty's SARMRA score steadily improved, PICC Life Insurance's comprehensive risk rating rose to A, and PICC Health Insurance's comprehensive risk rating rose to AA[26](index=26&type=chunk) - The intelligent risk control platform's application continued to deepen, enhancing dynamic risk monitoring and early warning capabilities, shifting risk control from "human defense" to "technical defense" and "intelligent control"[26](index=26&type=chunk) [2. Management Discussion and Analysis](index=13&type=section&id=2.%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive analysis of the Group's operational performance, financial condition, and risk management strategies [2.1 Business Overview](index=14&type=section&id=2.1%20Business%20Overview) This section outlines the company's industry environment, operational performance of key business segments, crucial business data, financial indicators, and differences in accounting standards between domestic and international practices; in the first half of 2025, the insurance industry experienced steady growth, with the National Financial Regulatory Administration actively promoting high-quality development; the Group made good progress in its core businesses, including property and casualty insurance, life and health insurance, and asset management, with significant increases in claims expenses and premium income, and substantial growth in investment returns; solvency remained adequate, and financial conditions were stable [2.1.1 Industry Conditions](index=14&type=section&id=2.1.1%20Industry%20Conditions) The insurance industry experienced steady growth in the first half of 2025, with regulatory bodies actively promoting high-quality development and risk prevention - In the first half of 2025, the insurance industry achieved original premium income of **3.74 trillion yuan**, a year-on-year increase of **5.3%**; original claims expenses were **1.35 trillion yuan**, a year-on-year increase of **9.4%**[28](index=28&type=chunk) - As of the end of June 2025, the insurance industry's total assets reached **39.22 trillion yuan**, a year-on-year increase of **16.1%**; net assets were **3.75 trillion yuan**, a year-on-year increase of **23.4%**[28](index=28&type=chunk) - The National Financial Regulatory Administration actively promoted the implementation of the "State Council's Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Insurance Industry", improved the policy system for the "Five Key Financial Initiatives", and strengthened supervision to prevent and resolve risks[28](index=28&type=chunk) [2.1.2 Principal Businesses](index=15&type=section&id=2.1.2%20Principal%20Businesses) This section details the performance of the Group's core business segments, including property and casualty insurance, life and health insurance, investment, and technology [2.1.2.1 Property and Casualty Insurance Segment](index=15&type=section&id=2.1.2.1%20Property%20and%20Casualty%20Insurance%20Segment) PICC Property and Casualty maintained its market leadership with strong premium growth, improved underwriting profitability, and significant net profit increase - In the first half of 2025, PICC Property and Casualty achieved original premium income of **323.282 billion yuan**, a year-on-year increase of **3.6%**, maintaining its industry-leading market share of **33.5%**[30](index=30&type=chunk) - The combined ratio for motor vehicle insurance was **94.2%**, a year-on-year decrease of **2.2 percentage points**; the company's overall combined ratio was **94.8%**, a year-on-year decrease of **1.4 percentage points**[30](index=30&type=chunk)[31](index=31&type=chunk) - Underwriting profit reached **13.015 billion yuan**, a year-on-year increase of **44.6%**; net profit was **24.455 billion yuan**, a year-on-year increase of **32.3%**[31](index=31&type=chunk) [2.1.2.2 Life and Health Insurance Segment](index=16&type=section&id=2.1.2.2%20Life%20and%20Health%20Insurance%20Segment) PICC Life Insurance and PICC Health Insurance both achieved significant growth in original premium income and new business value, with PICC Health maintaining its leading position in internet health insurance - PICC Life Insurance achieved original premium income of **90.513 billion yuan** in the first half of the year, a year-on-year increase of **14.5%**; half-year new business value was **4.978 billion yuan**, a year-on-year increase of **71.7%** on a comparable basis[32](index=32&type=chunk) - PICC Health Insurance achieved original premium income of **40.654 billion yuan** in the first half of the year, a year-on-year increase of **12.2%**; half-year new business value was **3.837 billion yuan**, a year-on-year increase of **51.0%** on a comparable basis[32](index=32&type=chunk) - PICC Health Insurance's internet health insurance business achieved original premium income of **10.247 billion yuan**, maintaining its market-leading position[32](index=32&type=chunk) [2.1.2.3 Investment Segment](index=16&type=section&id=2.1.2.3%20Investment%20Segment) The Group's investment segment delivered strong performance in the first half of 2025, with significant growth in total investment income and an expanding third-party asset management scale - In the first half of 2025, the Group achieved total investment income of **40.758 billion yuan**, a year-on-year increase of **40.2%**; annualized total investment yield was **5.0%**, a year-on-year increase of **0.9 percentage points**[33](index=33&type=chunk)[34](index=34&type=chunk) - As of June 30, 2025, the Group's third-party asset management scale reached **1,095.63 billion yuan**[34](index=34&type=chunk) [2.1.2.4 Technology Segment](index=17&type=section&id=2.1.2.4%20Technology%20Segment) The technology segment achieved new successes in empowering grassroots operations, enhancing intelligent marketing, and strengthening risk control, while expanding its digital service reach - Technology empowerment at the grassroots level achieved new results, with the sales outreach tool "PICC e-Tong" serving over **51 million customers** and generating over **70 billion yuan** in original premium income[36](index=36&type=chunk) - PICC Property and Casualty's intelligent marketing assistant was launched in **37 branches**; PICC Health Insurance's commercial group claims auto-calculation system processed **62.0%** more cases year-on-year[36](index=36&type=chunk) - The claims anti-fraud model effectively identified high-risk cases, reducing losses by nearly **800 million yuan**; the "PICC" APP's average monthly active users approached **4 million**[36](index=36&type=chunk) [2.1.3 Key Business Data](index=17&type=section&id=2.1.3%20Key%20Business%20Data) This section presents key business data for the Group and its main operating segments, highlighting their capital strength and solvency ratios - The Group primarily operates three major businesses: property insurance, life insurance, and asset management, structured into four main operating segments: property insurance, life insurance, health insurance, and asset management[37](index=37&type=chunk)[38](index=38&type=chunk) Solvency Indicators by Segment | Indicator | The Group (million yuan) | PICC Property and Casualty (million yuan) | PICC Life Insurance (million yuan) | PICC Health Insurance (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Actual Capital | 563,257 | 284,513 | 163,384 | 44,674 | | Core Capital | 448,256 | 257,672 | 107,018 | 24,835 | | Minimum Capital | 204,279 | 120,879 | 62,454 | 14,192 | | Comprehensive Solvency Ratio (%) | 276 | 235 | 262 | 315 | | Core Solvency Ratio (%) | 219 | 213 | 171 | 175 | [2.1.4 Key Financial Indicators](index=18&type=section&id=2.1.4%20Key%20Financial%20Indicators) This section provides a summary of the Group's key financial performance and position indicators for the reporting period Key Performance Indicators | Indicator | January-June 2025 (million yuan) | January-June 2024 (million yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 324,122 | 292,342 | 10.9 | | Insurance Service Revenue | 280,250 | 261,629 | 7.1 | | Total Operating Expenses | 280,338 | 255,994 | 9.5 | | Insurance Service Expenses | 246,201 | 227,518 | 8.2 | | Profit Before Tax | 43,064 | 36,348 | 18.5 | | Net Profit | 36,155 | 31,489 | 14.8 | | Net Profit Attributable to Parent Company Shareholders | 26,671 | 23,400 | 14.0 | | Earnings Per Share (yuan/share) | 0.60 | 0.53 | 14.0 | | Weighted Average Return on Net Assets (%) | 9.5 | 9.3 | Up 0.2 percentage points | | Net Cash Flow from Operating Activities | 74,845 | 70,044 | 6.9 | Key Financial Position Indicators | Indicator | June 30, 2025 (million yuan) | December 31, 2024 (million yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,878,102 | 1,766,321 | 6.3 | | Total Liabilities | 1,487,464 | 1,398,900 | 6.3 | | Net Assets | 390,638 | 367,421 | 6.3 | | Equity Attributable to Parent Company Shareholders | 285,925 | 268,866 | 6.3 | | Total Share Capital | 44,224 | 44,224 | – | | Net Assets Per Share (yuan/share) | 6.47 | 6.08 | 6.3 | [2.1.5 Explanation of Differences in Accounting Standards between Domestic and Overseas](index=19&type=section&id=2.1.5%20Explanation%20of%20Differences%20in%20Accounting%20Standards%20between%20Domestic%20and%20Overseas) This section highlights the accounting differences between China Enterprise Accounting Standards and International Financial Reporting Standards, particularly concerning agricultural insurance catastrophe premium reserves and equity dilution in associates - Differences exist between China Enterprise Accounting Standards and International Financial Reporting Standards in the accounting treatment of agricultural insurance catastrophe premium reserves and equity dilution in associates[44](index=44&type=chunk)[45](index=45&type=chunk) Reconciliation of Net Profit and Equity Attributable to Parent Company Shareholders | Indicator | January-June 2025 (million yuan) | January-June 2024 (million yuan) | June 30, 2025 (million yuan) | December 31, 2024 (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders under China Enterprise Accounting Standards | 26,530 | 22,687 | - | - | | Net Profit Attributable to Parent Company Shareholders under International Financial Reporting Standards | 26,671 | 23,400 | - | - | | Equity Attributable to Parent Company Shareholders under China Enterprise Accounting Standards | - | - | 285,111 | 268,733 | | Equity Attributable to Parent Company Shareholders under International Financial Reporting Standards | - | - | 285,925 | 268,866 | [2.1.6 Other Key Financial and Regulatory Indicators](index=20&type=section&id=2.1.6%20Other%20Key%20Financial%20and%20Regulatory%20Indicators) This section presents additional key financial and regulatory indicators for the Group and its major subsidiaries, providing a more comprehensive view of their performance and solvency Other Key Financial and Regulatory Indicators | Indicator | June 30, 2025 / January-June 2025 (million yuan) | December 31, 2024 / January-June 2024 (million yuan) | | :--- | :--- | :--- | | **Group Consolidated** | | | | Insurance Contract Liabilities | 1,199,701 | 1,122,797 | | Investment Assets | 1,760,674 | 1,641,756 | | Total Investment Yield (annualized) (%) | 5.0 | 4.1 | | Asset-Liability Ratio (%) | 79.2 | 79.2 | | **PICC Property and Casualty** | | | | Insurance Service Revenue | 249,040 | 235,841 | | Combined Ratio (%) | 94.8 | 96.2 | | **PICC Life Insurance** | | | | Insurance Service Revenue | 14,018 | 10,576 | | Half-Year New Business Value | 4,978 | 3,935 | | Embedded Value | 130,561 | 119,731 | | Surrender Rate (%) | 1.0 | 2.7 | | **PICC Health Insurance** | | | | Insurance Service Revenue | 15,603 | 13,786 | | Half-Year New Business Value | 3,837 | 3,025 | | Embedded Value | 35,662 | 30,117 | | Surrender Rate (%) | 0.6 | 0.6 | [2.2 Performance Analysis](index=22&type=section&id=2.2%20Performance%20Analysis) This section provides an in-depth analysis of the Group's operating performance across its property and casualty insurance, reinsurance, life and health insurance, and asset management businesses, highlighting key achievements and strategic initiatives [2.2.1 Insurance Business](index=22&type=section&id=2.2.1%20Insurance%20Business) This section analyzes the performance of the Group's property and casualty, reinsurance, and life and health insurance businesses, detailing premium growth, profitability, and strategic developments [2.2.1.1 Property and Casualty Insurance Business](index=22&type=section&id=2.2.1.1%20Property%20and%20Casualty%20Insurance%20Business) This section examines the performance of PICC Property and Casualty and PICC Hong Kong, highlighting their market positions, profitability, and strategic contributions [2.2.1.1.1 PICC Property and Casualty](index=22&type=section&id=2.2.1.1.1%20PICC%20Property%20and%20Casualty) PICC Property and Casualty's insurance service revenue increased by 5.6% year-on-year in the first half of 2025, with original premium income of 323.282 billion yuan, maintaining a leading market share of 33.5%; the company achieved an underwriting profit of 13.015 billion yuan, a 44.6% year-on-year increase, and a net profit of 24.455 billion yuan, a 32.3% year-on-year increase, by optimizing business structure, strengthening risk reduction services, and improving underwriting and claims efficiency; the combined ratio decreased by 1.4 percentage points to 94.8% - PICC Property and Casualty achieved insurance service revenue of **249.040 billion yuan** in the first half of 2025, a year-on-year increase of **5.6%**; original premium income was **323.282 billion yuan**, accounting for **33.5%** of the property and casualty insurance market share[50](index=50&type=chunk) - Underwriting profit reached **13.015 billion yuan**, a year-on-year increase of **44.6%**; net profit was **24.455 billion yuan**, a year-on-year increase of **32.3%**[50](index=50&type=chunk)[51](index=51&type=chunk) - The combined ratio was **94.8%**, a year-on-year decrease of **1.4 percentage points**; the combined claims ratio was **71.8%**, a year-on-year increase of **1.7 percentage points**; the combined expense ratio was **23.0%**, a year-on-year decrease of **3.1 percentage points**[51](index=51&type=chunk) Underwriting Profit and Combined Ratio by Line of Business | Line of Business | Insurance Service Revenue (million yuan) | Underwriting Profit (million yuan) | Combined Ratio (%) | | :--- | :--- | :--- | :--- | | Motor Vehicle Insurance | 150,276 | 8,726 | 94.2 | | Accident and Health Insurance | 30,975 | (569) | 101.8 | | Agricultural Insurance | 23,179 | 2,697 | 88.4 | | Liability Insurance | 18,575 | (674) | 103.6 | | Enterprise Property Insurance | 9,243 | 918 | 90.1 | | Other Insurance Classes | 16,792 | 1,917 | 88.6 | | Total | 249,040 | 13,015 | 94.8 | Original Premium Income by Channel | Channel | January-June 2025 Amount (million yuan) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | | Agency Sales Channel | 156,624 | 48.4 | (2.5) | | Direct Sales Channel | 140,360 | 43.5 | 11.3 | | Insurance Brokerage Channel | 26,298 | 8.1 | 4.0 | | Total | 323,282 | 100.0 | 3.6 | [2.2.1.1.2 PICC Hong Kong](index=29&type=section&id=2.2.1.1.2%20PICC%20Hong%20Kong) PICC Hong Kong achieved insurance service revenue of 1.03 billion yuan in the first half of 2025, with a combined ratio of 98.4%; the company actively serves as the Group's international development window, safeguarding Chinese enterprises "going global" with a service network covering over 80 countries and regions, and supports Hong Kong's role as an international financial center and integration into the Guangdong-Hong Kong-Macao Greater Bay Area, resulting in a net profit of 0.74 billion yuan - In the first half of 2025, PICC Hong Kong achieved insurance service revenue equivalent to **1.03 billion yuan**, with a combined ratio of **98.4%**[69](index=69&type=chunk) - Its international business service network covers over **80 countries and regions** globally, and global reinsurance qualification registration locations increased to **8 countries**[69](index=69&type=chunk) - In the first half of 2025, net profit was equivalent to **0.74 billion yuan**[69](index=69&type=chunk) [2.2.1.2 Reinsurance Business](index=30&type=section&id=2.2.1.2%20Reinsurance%20Business) This section focuses on the performance of PICC Reinsurance, highlighting its insurance service revenue, net profit, and strong risk comprehensive rating [2.2.1.2.1 PICC Reinsurance](index=30&type=section&id=2.2.1.2.1%20PICC%20Reinsurance) PICC Reinsurance achieved insurance service revenue of 2.495 billion yuan in the first half of 2025, with a net profit of 0.155 billion yuan, a 4.0% year-on-year increase; the company maintained an AA-class comprehensive risk rating, demonstrating its leading position in the industry, and is committed to becoming a technologically advanced reinsurance company with outstanding professional capabilities - In the first half of 2025, PICC Reinsurance achieved insurance service revenue of **2.495 billion yuan**[70](index=70&type=chunk) - Net profit reached **0.155 billion yuan**, a year-on-year increase of **4.0%**[70](index=70&type=chunk) - Maintained an **AA-class** comprehensive risk rating, holding a leading position in the industry[70](index=70&type=chunk) [2.2.1.3 Life and Health Insurance Business](index=30&type=section&id=2.2.1.3%20Life%20and%20Health%20Insurance%20Business) This section analyzes the performance of PICC Life Insurance and PICC Health Insurance, detailing their premium growth, new business value, and strategic initiatives [2.2.1.3.1 PICC Life Insurance](index=30&type=section&id=2.2.1.3.1%20PICC%20Life%20Insurance) PICC Life Insurance's insurance service revenue increased by 32.5% year-on-year in the first half of 2025, with original premium income growing by 14.5% year-on-year; new business value on a comparable basis increased by 71.7% year-on-year, and net profit reached 6.862 billion yuan; the company's business structure continued to optimize, with significant growth in ordinary life insurance premium income and a 107.7% year-on-year increase in new business value from the bancassurance channel; premium persistency rates remained healthy, with both 13-month and 25-month persistency rates improving - In the first half of 2025, PICC Life Insurance achieved insurance service revenue of **14.018 billion yuan**, a year-on-year increase of **32.5%**; original premium income increased by **14.5%** year-on-year[71](index=71&type=chunk) - Half-year new business value reached **4.978 billion yuan**, a year-on-year increase of **71.7%** on a comparable basis; net profit reached **6.862 billion yuan**[71](index=71&type=chunk) Original Premium Income by Line of Business | Line of Business | January-June 2025 Amount (million yuan) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | | Life Insurance | 81,558 | 90.1 | 16.5 | | Ordinary Life Insurance | 70,079 | 77.4 | 70.2 | | Participating Insurance | 11,417 | 12.6 | (60.3) | | Health Insurance | 8,375 | 9.3 | (1.3) | | Accident Insurance | 580 | 0.6 | 3.2 | | Total | 90,513 | 100.0 | 14.5 | Original Premium Income by Channel | Channel | January-June 2025 Amount (million yuan) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | | Individual Insurance Channel | 35,414 | 39.1 | 3.0 | | Bancassurance Channel | 53,104 | 58.7 | 24.1 | | Group Insurance Channel | 1,994 | 2.2 | 5.3 | | Total | 90,513 | 100.0 | 14.5 | - The bancassurance channel achieved half-year new business value of **2.924 billion yuan**, a year-on-year increase of **107.7%** on a comparable basis; first-year regular premiums increased by **53.9%** year-on-year[78](index=78&type=chunk) Premium Persistency Rates | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | 13-Month Premium Persistency Rate (%) | 96.4 | 96.0 | | 25-Month Premium Persistency Rate (%) | 94.3 | 90.1 | [2.2.1.3.2 PICC Health Insurance](index=36&type=section&id=2.2.1.3.2%20PICC%20Health%20Insurance) PICC Health Insurance's insurance service revenue increased by 13.2% year-on-year in the first half of 2025, with a net profit of 5.128 billion yuan; half-year new business value on a comparable basis increased by 51.0% year-on-year; the company actively serves the Healthy China strategy, maintaining a market-leading position in internet health insurance, with commercial group insurance premium income for projects over one million yuan increasing by 32.7% year-on-year; health management business service revenue reached 0.159 billion yuan, serving 4.8009 million person-times, a 21.4% year-on-year increase - In the first half of 2025, PICC Health Insurance achieved insurance service revenue of **15.603 billion yuan**, a year-on-year increase of **13.2%**; net profit reached **5.128 billion yuan**[86](index=86&type=chunk) - Half-year new business value reached **3.837 billion yuan**, a year-on-year increase of **51.0%** on a comparable basis[86](index=86&type=chunk) - Health management business achieved service revenue of **0.159 billion yuan**, providing health management services to **4.8009 million person-times**, a year-on-year increase of **21.4%**[86](index=86&type=chunk) Original Premium Income by Line of Business | Line of Business | January-June 2025 Amount (million yuan) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | | Medical Insurance | 20,411 | 50.2 | 10.7 | | Participating Endowment Insurance | 8,697 | 21.4 | (7.1) | | Critical Illness Insurance | 3,610 | 8.9 | 3.6 | | Long-Term Care Insurance | 7,413 | 18.2 | 63.2 | | Accident Insurance | 422 | 1.0 | 23.4 | | Disability Income Insurance | 101 | 0.2 | 42.3 | | Total | 40,654 | 100.0 | 12.2 | Original Premium Income by Channel | Channel | January-June 2025 Amount (million yuan) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | | Individual Insurance Channel | 11,915 | 29.3 | 8.7 | | Bancassurance Channel | 14,030 | 34.5 | 18.8 | | Group Insurance Channel | 14,709 | 36.2 | 9.3 | | Total | 40,654 | 100.0 | 12.2 | Premium Persistency Rates | Item | January-June 2025 | January-June 2024 | | :--- | :--- | :--- | | 13-Month Premium Persistency Rate (%) | 94.6 | 92.1 | | 25-Month Premium Persistency Rate (%) | 90.8 | 82.2 | [2.2.2 Asset Management Business](index=43&type=section&id=2.2.2%20Asset%20Management%20Business) This section details the performance of the Group's asset management subsidiaries, including PICC Asset Management, PICC Pension, PICC Investment Holdings, and PICC Capital, highlighting their asset under management, revenue, and strategic initiatives [2.2.2.1 PICC Asset Management](index=43&type=section&id=2.2.2.1%20PICC%20Asset%20Management) PICC Asset Management's assets under management reached 1.94 trillion yuan as of June 30, 2025, a 2.3% increase from the beginning of the year; the company achieved operating revenue of 0.864 billion yuan and net profit of 0.391 billion yuan, adhering to long-term and value investment philosophies, optimizing fixed income and equity investment strategies, and innovating in alternative investments, including the successful issuance of the market's first highway equity-type held-for-investment ABS - As of June 30, 2025, PICC Asset Management's assets under management reached **1.94 trillion yuan**, an increase of **2.3%** from the beginning of the year[105](index=105&type=chunk) - In the first half of this year, operating revenue reached **0.864 billion yuan**, and net profit was **0.391 billion yuan**[105](index=105&type=chunk) - Successfully issued the market's first highway equity-type held-for-investment ABS, which is also the first held-for-investment ABS managed by an insurance asset management company[106](index=106&type=chunk) [2.2.2.2 PICC Pension](index=44&type=section&id=2.2.2.2%20PICC%20Pension) PICC Pension's assets under management reached 702.646 billion yuan as of June 30, 2025, with operating revenue of 0.462 billion yuan and net profit of 0.167 billion yuan; the company actively supports the construction of the national multi-pillar pension security system, with enterprise annuity and occupational annuity assets under management totaling 678.339 billion yuan, a 5.1% increase from the beginning of the year; commercial pension management assets reached 24.307 billion yuan, a 223.9% increase from the beginning of the year, serving 172.5 thousand customers - As of June 30, 2025, PICC Pension's assets under management reached **702.646 billion yuan**[107](index=107&type=chunk) - In the first half of this year, operating revenue reached **0.462 billion yuan**, and net profit was **0.167 billion yuan**[107](index=107&type=chunk) - Enterprise annuity and occupational annuity assets under management totaled **678.339 billion yuan**, an increase of **5.1%** from the beginning of the year[107](index=107&type=chunk) - Commercial pension management assets reached **24.307 billion yuan**, an increase of **223.9%** from the beginning of the year; serving **172.5 thousand customers**, an increase of **10.0%** from the beginning of the year[107](index=107&type=chunk) [2.2.2.3 PICC Investment Holdings](index=44&type=section&id=2.2.2.3%20PICC%20Investment%20Holdings) PICC Investment Holdings achieved a net profit of 0.062 billion yuan in the first half of 2025, demonstrating steady growth in operating performance; the company is dedicated to building a unified real estate management platform within the system, enhancing refined asset management capabilities, and deepening its presence in community and home-based eldercare to support the Group's large health and eldercare ecosystem development - In the first half of this year, net profit reached **0.062 billion yuan**[108](index=108&type=chunk) - High-quality construction of a unified real estate management platform within the system, continuously improving refined asset management capabilities[108](index=108&type=chunk) - Deepening its presence in community and home-based eldercare, serving the Group's large health and eldercare ecosystem development[108](index=108&type=chunk) [2.2.2.4 PICC Capital](index=45&type=section&id=2.2.2.4%20PICC%20Capital) PICC Capital's assets under management reached 145.818 billion yuan as of June 30, 2025, with operating revenue of 0.186 billion yuan and net profit of 0.047 billion yuan; the company focuses on meeting insurance fund allocation needs by stabilizing debt, strengthening equity, and optimizing physical asset investments, actively serving national strategies, including the establishment of the "PICC Capital - State Grid Xinyuan Equity Investment Plan," and has received multiple industry awards - As of June 30, 2025, PICC Capital's assets under management reached **145.818 billion yuan**[109](index=109&type=chunk) - In the first half of this year, operating revenue reached **0.186 billion yuan**, and net profit was **0.047 billion yuan**[109](index=109&type=chunk) - Initiated the "PICC Capital - State Grid Xinyuan Equity Investment Plan," actively serving the construction of China's new energy system and the green and low-carbon transformation of energy[109](index=109&type=chunk) [2.2.3 Investment Portfolio and Returns](index=45&type=section&id=2.2.3%20Investment%20Portfolio%20and%20Returns) This section provides an overview of the Group's investment portfolio composition and an analysis of its investment returns, highlighting asset allocation strategies and performance [2.2.3.1 Investment Portfolio](index=46&type=section&id=2.2.3.1%20Investment%20Portfolio) As of June 30, 2025, the Group's total investment assets amounted to 1,760.674 billion yuan; fixed income investments constituted 66.6%, with bond investments at 49.7%, and AAA-rated corporate bonds and non-policy bank financial bonds accounting for 96.8%; fair value equity investments represented 20.4%; the Group optimized its asset allocation structure, increased equity positions, and strengthened credit risk management Investment Portfolio Composition | Investment Object | June 30, 2025 Amount (million yuan) | Proportion (%) | December 31, 2024 Amount (million yuan) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Investment Assets | 1,760,674 | 100.0 | 1,641,756 | 100.0 | | Cash and Cash Equivalents | 38,528 | 2.2 | 44,147 | 2.7 | | Fixed Income Investments | 1,173,143 | 66.6 | 1,115,058 | 67.9 | | Equity Investments Measured at Fair Value | 360,015 | 20.4 | 299,503 | 18.2 | | Other Investments | 188,988 | 10.7 | 183,048 | 11.1 | | Investments in Associates and Joint Ventures | 172,644 | 9.8 | 167,816 | 10.2 | - As of June 30, 2025, bond investments accounted for **49.7%**. Among corporate bonds and non-policy bank financial bonds, those with an external credit rating of AAA accounted for **96.8%**[113](index=113&type=chunk) - In terms of equity investments, the Group increased its equity positions; it strengthened its absolute return orientation, optimized the structure of equity holdings, and gradually increased the scale of other equity instrument investments that align with insurance funds' long-term and value investment philosophies[114](index=114&type=chunk) [2.2.3.2 Investment Returns](index=48&type=section&id=2.2.3.2%20Investment%20Returns) In the first half of 2025, the Group's total investment income reached 40.758 billion yuan, a 40.2% year-on-year increase; net investment income was 29.604 billion yuan, a 10.5% year-on-year increase; the annualized total investment yield was 5.0%, up 0.9 percentage points year-on-year, while the annualized net investment yield was 3.6%, down 0.2 percentage points year-on-year Investment Returns | Item | January-June 2025 (million yuan) | January-June 2024 (million yuan) | | :--- | :--- | :--- | | Total Investment Income | 40,758 | 29,064 | | Net Investment Income | 29,604 | 26,795 | | Total Investment Yield (annualized) (%) | 5.0 | 4.1 | | Net Investment Yield (annualized) (%) | 3.6 | 3.8 | - In the first half of 2025, the Group's total investment income was **40.758 billion yuan**, a year-on-year increase of **40.2%**; net investment income was **29.604 billion yuan**, a year-on-year increase of **10.5%**[117](index=117&type=chunk) - Annualized total investment yield was **5.0%**, a year-on-year increase of **0.9 percentage points**; annualized net investment yield was **3.6%**, a year-on-year decrease of **0.2 percentage points**[117](index=117&type=chunk) [2.3 Special Analysis](index=49&type=section&id=2.3%20Special%20Analysis) This section provides a focused analysis of the Group's liquidity and solvency, highlighting key trends and management strategies [2.3.1 Liquidity Analysis](index=49&type=section&id=2.3.1%20Liquidity%20Analysis) The Group maintains ample liquidity, with net cash flow from operating activities increasing by 6.9% year-on-year, primarily due to higher premium cash inflows; net cash outflow from investing activities increased due to higher investment payments, while net cash outflow from financing activities decreased due to reduced net cash payments for repurchase financial assets - The Group's liquidity funds primarily originate from cash received from issuing insurance contracts, investment income, sale or maturity of investment assets, and financing activities[118](index=118&type=chunk) - The Group's net cash flow from operating activities changed from a net inflow of **70.044 billion yuan** in the first half of 2024 to a net inflow of **74.845 billion yuan** in the first half of 2025, primarily due to increased premium cash inflows[122](index=122&type=chunk) - The Group's net cash flow used in investing activities changed from a net outflow of **44.453 billion yuan** in the first half of 2024 to a net outflow of **65.733 billion yuan** in the first half of 2025, primarily due to increased cash payments for investments[122](index=122&type=chunk) - The Group's net cash flow used in financing activities changed from a net outflow of **21.759 billion yuan** in the first half of 2024 to a net outflow of **14.567 billion yuan** in the first half of 2025, primarily due to a decrease in net cash payments for repurchase financial assets[123](index=123&type=chunk) [2.3.2 Solvency](index=50&type=section&id=2.3.2%20Solvency) The Group maintains strong solvency, with its major subsidiaries showing steady improvements in comprehensive risk ratings and sufficient capital to withstand risks - The Group's solvency situation is detailed in the "I. Company Business Overview" section of this report's Management Discussion and Analysis, showing a comprehensive solvency ratio of **276%** and a core solvency ratio of **219%**[17](index=17&type=chunk)[40](index=40&type=chunk)[124](index=124&type=chunk) [2.4 Future Outlook and Risk Analysis](index=51&type=section&id=2.4%20Future%20Outlook%20and%20Risk%20Analysis) This section outlines the Group's future strategic priorities, including strengthening functions, pursuing high-quality development, deepening reforms, and enhancing risk control, while also identifying and addressing key risks from the macroeconomic environment, market, credit, and insurance operations [2.4.1 Future Outlook](index=51&type=section&id=2.4.1%20Future%20Outlook) The Group anticipates a positive macroeconomic environment in the second half of 2025, laying a solid foundation for its strategic focus on strengthening functions, high-quality development, deepening reforms, and robust risk control - In the second half of 2025, the national economy is projected to grow by **5.3%**, with steady progress in macroeconomic policies, laying a solid foundation for the development of the financial and insurance industries[125](index=125&type=chunk) - The Group will focus on strengthening its functions, serving the overall economic and social development, and implementing the central government's "Four Stabilities" work deployment and the "Five Key Financial Initiatives" requirements[126](index=126&type=chunk) - The Group will focus on high-quality development, maintaining an upward and positive development trend, continuously consolidating its property and casualty insurance advantages, sustaining rapid growth in life insurance new business value, increasing innovation in health insurance products, and enhancing the proactive investment capabilities of its investment segment[127](index=127&type=chunk) - The Group will focus on promoting "Six Reforms," including deepening corporate governance reform, Group strategic management and control mechanism reform, and digitalization reform, to remove institutional and mechanism obstacles hindering high-quality development[127](index=127&type=chunk) - The Group will focus on risk prevention and control, firmly holding the risk bottom line, coordinating stable growth with risk prevention, strengthening asset-liability linkage management, and enhancing risk prevention and control capabilities[128](index=128&type=chunk) [2.4.2 Key Potential Risks and Countermeasures](index=53&type=section&id=2.4.2%20Key%20Potential%20Risks%20and%20Countermeasures) This section identifies key risks, including macroeconomic, market, credit, and insurance business risks, and outlines the Group's corresponding mitigation strategies - Macroeconomic environment risks: Domestic economic structural optimization and adjustment face challenges, and international uncertainties have significantly increased. The Group will continuously analyze the impact of the macroeconomic environment and policies, and enhance risk management capabilities[129](index=129&type=chunk) - Market and credit risks: Equity investments are affected by geopolitical factors and external economic policies, fixed income investments face pressure from low-interest rate environments, and credit conditions in sectors like real estate require attention. The Group will strengthen risk exposure monitoring, optimize asset allocation, and enhance post-investment risk management[129](index=129&type=chunk)[130](index=130&type=chunk) - Insurance business risks: Property and casualty insurance faces pressure to control claims costs due to extreme weather events, while life insurance faces interest rate risk where asset returns may not cover liability costs. The Group will accelerate the construction of a catastrophe insurance system, enhance risk reduction services, and reasonably control liability-side costs[131](index=131&type=chunk) [2.5 Risk Management](index=54&type=section&id=2.5%20Risk%20Management) This section details the Group's risk management organizational framework, institutional mechanisms, key methods, and processes, along with the assessment and analysis of Group-specific and special risks; the Group has established a vertically and horizontally integrated risk management structure and a three-tier institutional system, continuously enhancing risk management effectiveness through intelligent risk control tools, regular risk monitoring and screening, and comprehensive risk assessment; in the first half of 2025, the Group maintained adequate solvency, executed its risk appetite well, and experienced no major risk events [2.5.1 Risk Management Organizational Framework and Operating Model](index=54&type=section&id=2.5.1%20Risk%20Management%20Organizational%20Framework%20and%20Operating%20Model) The Group has established a comprehensive risk management framework that integrates vertical and horizontal structures to ensure effective risk oversight and collaboration - The Group has established a vertically and horizontally integrated risk management framework, which vertically spans the Board of Directors, management, and various functional departments, and horizontally features a collaborative "three lines of defense" in risk management[132](index=132&type=chunk) [2.5.2 Risk Management System and Mechanism](index=55&type=section&id=2.5.2%20Risk%20Management%20System%20and%20Mechanism) The Group has implemented a robust three-tier risk management system and a comprehensive set of mechanisms covering the entire risk management process - The Group has established a three-tier risk management system, including basic risk management policies, special risk and special work policies, and practical procedures and operating guidelines[133](index=133&type=chunk) - A complete set of risk control mechanisms has been established, covering the entire risk management process, including risk policy formulation, responsibility implementation, comprehensive coordination, monitoring, identification, analysis, assessment and reporting, risk screening, supervision and inspection, emergency and risk disposal, risk performance appraisal, and risk accountability[133](index=133&type=chunk) [2.5.3 Key Risk Management Methods and Processes](index=55&type=section&id=2.5.3%20Key%20Risk%20Management%20Methods%20and%20Processes) The Group continuously refines its risk management tools and methodologies, optimizing the entire process from risk identification to reporting to enhance overall effectiveness - The Group continuously optimizes its risk management tools and methods, constantly improving the full process of risk identification, assessment, analysis, and reporting to enhance risk management effectiveness[134](index=134&type=chunk) - Continuously optimized Group risk appetite management, compiled the "2025 Risk Appetite Statement", and optimized stress testing models and threshold settings[135](index=135&type=chunk) - Continuously strengthened the application of intelligent risk control tools such as big data and artificial intelligence, promoting the shift of risk control from "human defense" to "technical defense" and "intelligent control", with the intelligent risk control platform already launched and widely implemented[135](index=135&type=chunk) - Regularly conducted risk monitoring and screening, forming risk monitoring and early warning mechanisms at daily, weekly, monthly, quarterly, and annual frequencies[136](index=136&type=chunk) [2.5.4 Key Risk Assessment and Analysis](index=56&type=section&id=2.5.4%20Key%20Risk%20Assessment%20and%20Analysis) This section provides an in-depth assessment and analysis of the Group's specific risks and various special risks, outlining mitigation strategies [2.5.4.1 Group-Specific Risks](index=56&type=section&id=2.5.4.1%20Group-Specific%20Risks) The Group actively manages risks such as contagion, organizational opacity, concentration, and non-insurance sector risks through robust internal controls and monitoring - Regarding risk contagion, the Group strengthened daily management of related party transactions and internal transactions to ensure fairness, and improved firewall management measures[138](index=138&type=chunk) - Regarding organizational structure opacity risk, the Group continuously optimized the setup of functional departments and regularly assessed the Group's equity structure, management structure, operational processes, and business types[139](index=139&type=chunk) - Regarding concentration risk, the Group strengthened control from four aspects: counterparty, industry, customer, and business, to prevent risk accumulation at the Group level[139](index=139&type=chunk) - Regarding non-insurance sector risks, the Group strengthened the management of non-insurance subsidiaries to prevent their operating activities from adversely affecting the Group and its insurance member companies' solvency[140](index=140&type=chunk) [2.5.4.2 Special Risks](index=58&type=section&id=2.5.4.2%20Special%20Risks) The Group effectively manages strategic, insurance, market, credit, liquidity, operational, and reputational risks through proactive measures and continuous monitoring - Regarding strategic risk, the Group strengthened overall coordination, improved management levels, achieved steady operating performance, and actively researched and formulated deepening reform plans[141](index=141&type=chunk) - Regarding insurance risk, the Group deepened integrated liability-side management, with stable insurance risk indicators for major subsidiaries, effective control of combined ratios, and low surrender rates[141](index=141&type=chunk) - Regarding market risk, the Group closely monitored macroeconomic and capital market changes, optimized major asset allocation, enhanced monitoring and early warning effectiveness, and saw value restoration in listed equity investment assets[142](index=142&type=chunk) - Regarding credit risk, the Group strengthened credit risk control and post-investment management, with no investment credit risk events occurring in the first half of 2025[142](index=142&type=chunk) - Regarding liquidity risk, the Group continuously strengthened liquidity management, enhanced cash flow monitoring and early warning, and the Group as a whole did not experience any major liquidity risk events in the first half of 2025[143](index=143&type=chunk) - Regarding operational risk, the Group continuously improved and perfected its operational risk management system and mechanisms, strengthened the application of the three major basic tools for operational risk, and continuously enhanced management capabilities[143](index=143&type=chunk) - Regarding reputational risk, the Group implemented full-process reputational risk management, continuously conducted 24/7 public opinion monitoring, and reputational risk remained generally stable in the first half of 2025[144](index=144&type=chunk) [2.6 Borrowings](index=59&type=section&id=2.6%20Borrowings) As of June 30, 2025, the Group's bank borrowings amounted to 0.327 billion yuan, also including issued capital supplementary bonds and repurchase agreements related to investment activities - As of June 30, 2025, the Group's bank borrowings amounted to **0.327 billion yuan**[145](index=145&type=chunk) - Borrowings also include capital supplementary bonds issued by the Group and repurchase agreements involved in investment activities[145](index=145&type=chunk) [3. Embedded Value](index=60&type=section&id=3.%20Embedded%20Value) This section presents the independent actuary's review reports on the embedded value of PICC Life Insurance and PICC Health Insurance, including methodologies, assumptions, and sensitivity analyses [3.1 Independent Actuary's Review Report on the Embedded Value of PICC Life Insurance Company Limited](index=61&type=section&id=3.1%20Independent%20Actuary's%20Review%20Report%20on%20the%20Embedded%20Value%20of%20PICC%20Life%20Insurance%20Company%20Limited) Ernst & Young (China) Advisory Limited conducted an independent actuarial review of PICC Life Insurance's embedded value and half-year new business value as of June 30, 2025; the review concluded that the valuation methods, economic assumptions, and operating assumptions adopted by PICC Life Insurance comply with relevant standards and are reasonable, and the embedded value results are consistent with the methods and assumptions; the report details the overall results of embedded value, results by channel, valuation assumptions, and sensitivity test results [3.1.1 Scope of Work](index=61&type=section&id=3.1.1%20Scope%20of%20Work) This section outlines the scope of the independent actuary's review, covering valuation methods, assumptions, and various results including embedded value and new business value - The scope of review included valuation methods, assumptions, various results (embedded value, half-year new business value, and sensitivity testing), and half-year new business value results by sales channel[151](index=151&type=chunk) [3.1.2 Basis, Reliance, and Limitations of Opinion](index=61&type=section&id=3.1.2%20Basis%2C%20Reliance%2C%20and%20Limitations%20of%20Opinion) This section clarifies the foundation, dependencies, and inherent limitations of the independent actuary's opinion on embedded value - The review was conducted in accordance with the "Actuarial Practice Standard: Embedded Value Valuation Standard for Life Insurance" issued by the China Association of Actuaries in November 2016[150](index=150&type=chunk) - The report's conclusions are based on the assumption that the data and information provided by PICC Life Insurance are accurate and complete, without independent verification[152](index=152&type=chunk) - Embedded value calculations involve numerous future projections and assumptions, and actual operating results may deviate from these projections[152](index=152&type=chunk) [3.1.3 Review Opinion](index=62&type=section&id=3.1.3%20Review%20Opinion) The independent actuary's review concluded that PICC Life Insurance's embedded value valuation methods and assumptions are reasonable and consistent with the results - PICC Life Insurance's embedded value valuation methods comply with the standards of the China Association of Actuaries[154](index=154&type=chunk) - The economic and operating assumptions adopted consider current investment market conditions, the company's investment strategy, past operating experience, and future outlook[154](index=154&type=chunk) - The various embedded value results are consistent with the methods and assumptions used and are generally reasonable[154](index=154&type=chunk) [3.1.4 PICC Life Insurance Company Limited Embedded Value Report as of June 30, 2025](index=63&type=section&id=3.1.4%20PICC%20Life%20Insurance%20Company%20Limited%20Embedded%20Value%20Report%20as%20of%20June%2030%2C%202025) This section presents the detailed embedded value report for PICC Life Insurance, including definitions, methodology, results, valuation assumptions, and sensitivity analysis [3.1.4.1 Definitions and Methodology](index=63&type=section&id=3.1.4.1%20Definitions%20and%20Methodology) This section defines key terms such as embedded value and new business value, and describes the non-random cash flow discounting method used for their calculation - Embedded value is the sum of adjusted net assets and the value of in-force business as of the valuation date[158](index=158&type=chunk) - Half-year new business value is the present value of shareholders' interests in future cash flows generated by new policies sold during the specified half-year period and their corresponding assets, as of the policy issuance date[158](index=158&type=chunk) - PICC Life Insurance uses the non-random cash flow discounting method to calculate embedded value and half-year new business value, a method widely used in the industry[156](index=156&type=chunk) [3.1.4.2 Results Summary](index=63&type=section&id=3.1.4.2%20Results%20Summary) This section summarizes the embedded value and half-year new business value results for PICC Life Insurance, including a breakdown by distribution channel Embedded Value | Indicator | June 30, 2025 (million yuan) | December 31, 2024 (million yuan) | | :--- | :--- | :--- | | Embedded Value | 130,561 | 119,731 | | Adjusted Net Assets | 103,921 | 97,494 | | Value of In-Force Business after Cost of Required Capital | 26,639 | 22,237 | Half-Year New Business Value | Indicator | June 30, 2025 (million yuan) | June 30, 2024 (million yuan) | | :--- | :--- | :--- | | Half-Year New Business Value after Cost of Required Capital | 4,978 | 3,935 | | Bancassurance Channel Half-Year New Business Value | 2,924 | 1,934 | | Individual Insurance Channel Half-Year New Business Value | 2,048 | 1,968 | [3.1.4.3 Valuation Assumptions](index=65&type=section&id=3.1.4.3%20Valuation%20Assumptions) This section details the key assumptions used in the embedded value calculation for PICC Life Insurance, covering discount rates, investment returns, policyholder dividends, mortality, morbidity, claims, surrender rates, expenses, and tax rates - The risk discount rate is **8.5% per annum**, and the investment return assumption is **4% per annum**[164](index=164&type=chunk)[165](index=165&type=chunk) - Policyholder dividends are determined according to the company's dividend policy; mortality and morbidity rates are set based on industry experience and the company's actual experience[166](index=166&type=chunk)[167](index=167&type=chunk) - Claims ratios are based on the company's actual operating experience, ranging from **40% to 90%** of gross premiums; surrender rates are based on company experience and future outlook[168](index=168&type=chunk)[169](index=169&type=chunk) - Expense and commission assumptions are based on the company's past expense levels and future expectations, assuming an annual inflation rate of **2%**; the corporate income tax rate is assumed to be **25%**[17

Group 1 - The insurance sector increased by 0.91% on September 26, with Xinhua Insurance leading the gains [1] - The Shanghai Composite Index closed at 3828.11, down 0.65%, while the Shenzhen Component Index closed at 13209.0, down 1.76% [1] - Key individual stock performances in the insurance sector included Xinhua Insurance at 60.37 (+1.92%), China Life at 38.48 (+1.26%), and China Pacific Insurance at 35.20 (+1.24%) [1] Group 2 - The net inflow of main funds in the insurance sector was 82.33 million yuan, while retail investors saw a net outflow of 209 million yuan [1] - Xinhua Insurance had a main fund net inflow of 140 million yuan, but a retail net outflow of 76.98 million yuan [2] - China Life experienced a net inflow of 59.89 million yuan from main funds, but also a retail net outflow of 39.32 million yuan [2]

Core Viewpoint - The insurance sector experienced a notable increase on September 25, with major companies such as China Life, New China Life, and China Pacific Insurance rising over 1% [1] Company Summary - China Life saw a significant rise in its stock price, contributing to the overall positive trend in the insurance sector [1] - New China Life also reported an increase in its stock value, aligning with the upward movement in the industry [1] - China Pacific Insurance's stock rose by more than 1%, reflecting investor confidence in the company [1] - China Insurance and Ping An Insurance followed suit, also showing gains in their stock prices [1]

Core Viewpoint - The pet insurance market is experiencing significant growth, with varying attitudes among different insurance companies towards this expanding sector [1] Industry Overview - Out of 89 property insurance companies, 59 are involved in pet insurance products, indicating a strong interest in this market segment [1] - Approximately 33 property insurance companies offer pet medical insurance, representing nearly 40% of the total property insurers, with 132 pet medical insurance products launched, of which around 90 are currently available for sale [1] Company Strategies - ZhongAn Online, an internet-based insurance company, is highlighted as a proactive player in the pet insurance market [1] - Major insurance companies such as People’s Insurance, Ping An, and Taikang, along with smaller firms like Cathay Insurance, JD Allianz, and Taikang Online, are actively developing related business [1] - However, over 50 property insurance companies have not yet launched any pet medical insurance products, and some companies that initially entered the market have since withdrawn their offerings [1]

Core Points - The Puer Financial Regulatory Bureau approved the request from China People's Property Insurance Company for the relocation of its Sixshun Township marketing service department [1] - The new business location is specified as No. 102 and 103, Building 3, Guan Fang Street, Sixshun Town, Simao District, Puer City, Yunnan Province [1] - The company is required to handle the change and obtain the necessary permits in accordance with relevant regulations [1]

证券之星消息，9月26日中国人保资产管理有限公司发布《人保货币市场基金2025年国庆假期前调整大 额申购、转换转入及定期定额投资业务限额的公告》。公告中提示，为根据中国证监会相关规定及沪深 交易所休市安排，为保护持有人利益，特暂停相关业务，自2025年9月29日起人保货币市场基金2025年 国庆假期前调整大额申购、转换转入及定期定额投资业务限额，申购、转换转入上限金额为50.0万元， 下属分级基金调整明细如下： | 分级基金简称 代码 | | 是否暫停（大额）申购 | | 申购限额 转入限额 定投限额 | | | --- | --- | --- | --- | --- | --- | | | | (转入转出、赎回、定投) | (元) | (元) | (元) | | 人保货币A | 004903 | 를 | 50.00万 | 50.00万 | | | 人保货币B | 004904 | 를 | 50.00万 | 50.00万 | | | 人保货币E | 022605 | 를 | 50.00万 | 50.00万 | | 以上内容为证券之星据公开信息整理，由AI算法生成（网信算备3101043457103012400 ...

September 25, 2025 02:05 PM GMT Investor Presentation | Asia Pacific Hong Kong/China Insurance: Marketing Pack 3Q25 We think insurers are on track for high-quality transition, with continued healthy demand, improved VNB margin as well as better product mix. The asset side could also benefit from a relatively stable interest rate backdrop and healthy stock market. Although visibility on 3Q25 results is still somewhat unclear, we maintain our Attractive view on Hong Kong/China Insurance. M Foundation Morgan S ...

| 表格序號 | 大股東/董事/最高行政人員名 作出披露的 買入 / 賣出或涉及的 每股的平均價 | | | | 持有權益的股份數目 佔已發行的有關事件的日 相關法 | | --- | --- | --- | --- | --- | --- | | | 股份數目 | | | | (語参照 上犹*註 有投票權股 期(日 / 月 / 份權益 | | | | | | | 分自分比 年 | | CS20250925E00006 | The Capital Group | 1001(L) | 708,000(L | HKD 6.4193 | 436.696,000(L) 5.00(L)23/09/2025 | | | Companies, Inc. | | | | | | 股份代號: | 01339 | | --- | --- | | 上市法國名稱: | 中國人民保險集團股份有限公司 - H股 | | 日期 (日 / 月 / 年): | 26/08/2025 - 26/09/2025 | 格隆汇9月26日丨根据联交所最新权益披露资料显示，2025年9月23日，中国人民保险集团(01339.HK)获The Capital ...