Zheng Quan Ri Bao·2025-09-11 16:37Core Viewpoint - China Pacific Insurance (Group) Co., Ltd. successfully issued HKD-denominated zero-coupon convertible bonds, raising HKD 15.556 billion, with a conversion premium of 25% and over 70% subscription from long-term investors [1] Group 1: Financial Performance - In the first half of 2025, China Pacific Insurance reported operating revenue of CNY 200.496 billion, a year-on-year increase of 3% [1] - The net profit attributable to shareholders was CNY 27.885 billion, up 11% year-on-year [1] - The operating profit, excluding volatile items, was CNY 19.909 billion, reflecting a growth of 7.1% [1] - As of the end of the first half, the comprehensive solvency adequacy ratio was 264%, and the core solvency adequacy ratio was 190%, both significantly above regulatory requirements [1] Group 2: Strategic Development - The funds raised from the bond issuance will primarily support the insurance core business and the company's three strategic developments: "Great Health, Artificial Intelligence+, and Internationalization" [1] - The issuance reflects the company's focus on its core responsibilities and commitment to long-term value creation in a new development phase of the insurance industry [1] Group 3: Market Context and Trends - The issuance of zero-coupon convertible bonds is the second case in the insurance industry this year, following China Ping An's issuance of HKD 11.765 billion [2] - The total issuance of zero-coupon convertible bonds by insurance companies this year amounts to approximately HKD 27.321 billion [2] - Insurance companies are increasingly diversifying capital replenishment channels, enhancing capital strength through various means, including capital supplement bonds and perpetual bonds [2] Group 4: Investor Insights - The current recovery of confidence in the capital market and improving operating performance of insurance companies have led to higher valuation expectations [3] - Zero-coupon convertible bonds allow insurance companies to avoid interest payments during the bond's term, significantly reducing financing costs [3] - The issuance of convertible bonds enhances the core solvency adequacy ratio, providing stronger risk resilience for insurance companies [3]