PICC P&C signs reinsurance agreements with PICC Reinsurance and PICC HK

Core Viewpoint - PICC Property and Casualty Company Limited has finalized new reinsurance framework agreements with its affiliates, aimed at diversifying risk exposure and supporting stable operations [1][4]. Group 1: Agreement Details - The reinsurance agreements will be effective from January 1, 2026, to December 31, 2026 [1]. - Cession and assumption ratios will range from 0.1% to 80–100%, with commission rates capped at 45% for ceded business and 40% for assumed business [2]. - The agreements are structured as continuing connected transactions under Hong Kong Listing Rules, requiring periodic reporting and annual review, but independent shareholder approval is not necessary [3]. Group 2: Financial Limits and Rationale - Annual caps for premiums ceded to PICC Reinsurance are set at 6.5 billion yuan (approximately $929 million), and commission payments are capped at 2.9 billion yuan (approximately $414 million) [4]. - The rationale for these agreements includes the diversification of risk exposure and the support of more stable operations [4][5]. Group 3: Board Review and Fairness - The board, including independent directors, has concluded that the transactions will be conducted on normal commercial terms and are in the best interests of the company and its shareholders [5].