Summary of China Pacific Insurance Conference Call Company Overview - **Company**: China Pacific Insurance (CPIC) - **Industry**: Insurance Key Points Business Performance and Strategy - CPIC's life insurance and bancassurance business executed the "stabilize value, optimize structure" strategy in 2026, achieving a nearly 40% year-on-year growth in new premium income, with the number of new premium issuance points reaching 11,000, an 11% increase year-on-year [2][5] - The group’s solvency significantly improved in 2025, primarily due to the life insurance segment's effective hedging against interest rate declines through reclassification of fixed-income assets [2][6] - The property insurance segment saw a profit growth rate of 34% in 2025, marking a historical high, while life insurance's net profit growth was moderate due to conservative accounting strategies, although operating profit grew by 6% driven by premium scale and interest spread [2][9] Investment Strategy - CPIC maintained a "barbell" investment strategy, with investment performance increasing by 47% year-on-year in 2025. The focus will shift towards increasing the equity proportion in the public market, emphasizing high-dividend quality companies alongside satellite strategies in technology and health [2][11] - The company plans to enhance its asset-liability management system and diversify its investment strategies to strengthen risk prevention [4][11] Health and Wellness Strategy - The "Big Health" strategy has been upgraded to "Big Health and Elderly Care," establishing a group-level organizational structure. Over the next five years, the company will quantify health insurance and elderly finance targets, focusing on light-asset models for institutional elderly care and covering over 70 cities for home care services [2][10] Future Outlook and Challenges - For 2026, CPIC aims to achieve breakthroughs in three areas: serving national development goals, cultivating new growth drivers, and advancing the "Big Health and Elderly Care," internationalization, and "AI+" strategies [4][8] - The company anticipates challenges from low interest rates affecting traditional profit models and increased competition shifting from new customer acquisition to existing customer retention [4][9] Operational Efficiency - The company has optimized its governance and risk control capabilities, maintaining a leading comprehensive risk rating in the industry. The MSCI ESG rating reached the highest AAA level, enhancing capital strength and international recognition [3][4] - The solvency ratio is expected to remain significantly above regulatory requirements, ensuring sustainable dividend distribution despite market fluctuations [5][6] Collaboration and Synergy - CPIC has developed a systematic collaborative development framework, enhancing synergy across its various business lines. The focus for 2026 will be on providing comprehensive insurance protection and services through strategic collaboration [12][13] Financial Performance - In 2025, the property insurance segment's profit growth was driven by both insurance and investment performance, achieving a historical high. The life insurance segment's conservative strategies impacted net profit growth, but long-term profitability remains strong [9][10] Conclusion - CPIC is positioned to leverage its strategic initiatives in health, technology, and international markets while navigating the challenges posed by economic conditions and industry competition. The focus on operational efficiency and collaborative synergies will be crucial for sustaining growth and enhancing shareholder value [4][8][12]

Financial Data and Key Metrics Changes - In 2025, the group operating income was CNY 435 billion, an increase of 7.7% year-on-year. Insurance revenue reached CNY 288 billion, up by 3.4%. Group net profit was CNY 53.5 billion, up by 19% [3][4] - The group OPAT attributable to shareholders was CNY 36 billion, reflecting a growth of 6.1%. The group EV stood at CNY 613 billion, up by 9.1% from the end of 2024 [3][5] - The number of customers increased by 3.5% to 190 million, and the group AUM approached CNY 3.9 trillion, up by 9.8% [4] Business Line Data and Key Metrics Changes - The life insurance business achieved written premiums of CNY 211.6 billion, up by 4.5%. The core agent headcount was 46,000, with a 13-month persistence ratio exceeding 90% [7][9] - The bank channel recorded written premiums of CNY 61.6 billion, up by 46.4%, with regular pay FYP increasing by 43% [10] - The P&C business reported primary premium income of CNY 201 billion, with auto insurance premiums at CNY 110 billion (up by 3%) and non-auto premiums at CNY 91 billion (down by 3%) [11][12] Market Data and Key Metrics Changes - The underwriting combined ratio for P&C business improved to 97.5%, down by 1.1 percentage points year-on-year, with underwriting profit amounting to CNY 4.8 billion, up by 81% [11] - The NEV business generated CNY 25 billion in premiums, accounting for 22% of total auto premiums, with a renewal rate of 78.1% for individual customers [12][55] Company Strategy and Development Direction - The company aims to enhance operational efficiency and service capability to become a top-tier insurance company with market leadership and international competitiveness [15] - Future strategies include focusing on health and elderly care, internationalization, and AI adoption to drive efficiency and optimize customer experience [21][33] - The company plans to strengthen agricultural support systems and expand inclusive insurance offerings nationwide [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of China's economy and the importance of adapting to a new interest rate era, emphasizing the need for steady progress while ensuring quality and efficiency [19][20] - The company anticipates both opportunities and challenges in the insurance industry, particularly with demographic shifts and technological advancements [19][20] Other Important Information - The MSCI ESG rating was upgraded to the highest AAA level, reflecting the company's commitment to sustainable development [6] - The company has implemented a new accounting standard, resulting in a CAGR of 9.5% in net assets since its adoption [6] Q&A Session Summary Question: Achievements in the 14th Five-Year Plan and outlook for the 15th Five-Year Plan - Management noted significant progress in market position, transformation results, and growth drivers, particularly in P&C and life business [17][18] Question: Bank channel performance and future initiatives - The bank channel has met expectations, with improvements in regular pay business and partnerships with SOE banks [23][24] Question: Solvency ratio and maintaining dividend payouts - The company reported improved solvency due to better business quality and asset-liability matching, ensuring stability in dividend payouts [26][27] Question: Outlook for 2026 and profitability expectations - Management expressed confidence in maintaining solid performance, focusing on quality growth and operational efficiency [29][31]

Group 1 - The company launched the "China Pacific Insurance Customer Festival" to create a diversified interactive platform for customer engagement, attracting 1.739 million participants [1] - The company aims to enhance its global service capabilities and risk reduction abilities by collaborating with strategic partners to support Chinese enterprises in cross-border financial services [1] - The company is upgrading its group customer collaboration model to provide innovative financial services and deepen the value of group customer resources [1] Group 2 - The company emphasizes sustainable development and aims to integrate ESG principles into its overall value chain, with a plan to develop a "Green Low-Carbon Transition Plan" by 2025 [2][3] - The company has established a comprehensive ESG governance structure, including a clear hierarchy and management system to support ESG practices [4] - The company has signed various international agreements to enhance its ESG performance and aims to achieve an MSCI ESG rating of AAA by 2025 [5] Group 3 - The company plans to increase its green insurance coverage to over 310 trillion yuan by 2025, focusing on climate risk and green finance [6] - The company has developed innovative insurance products, including catastrophe insurance and carbon loss insurance, to support ecological and environmental initiatives [6][7] - The company aims to achieve a green investment scale exceeding 300 billion yuan by the end of 2025 [7] Group 4 - The company is enhancing its carbon emission management and aims to establish a comprehensive carbon reduction target by 2025 [8] - The company is actively promoting biodiversity protection through innovative insurance products and community engagement initiatives [9] Group 5 - The company is focusing on technology innovation and has introduced insurance products tailored for the technology sector, with a cumulative insurance amount exceeding 67 trillion yuan by 2025 [10] - The company has developed inclusive insurance products to improve accessibility, covering over 2.27 billion people with critical illness insurance [11] Group 6 - The company is committed to enhancing consumer rights protection and has implemented a comprehensive consumer rights protection system [14] - The company has developed a financial education program that has reached over 700 million consumers through various initiatives [14] Group 7 - The company has established a robust corporate governance structure, streamlining its governance framework to enhance decision-making efficiency [18] - The company maintains a solvency ratio above regulatory requirements, ensuring financial stability [29] Group 8 - The company plans to distribute a cash dividend of 1.15 yuan per share for the 2025 fiscal year, totaling approximately 11.06 billion yuan [35][36] - The company aims to retain sufficient undistributed profits to support long-term strategic implementation [40]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 中國太平洋保險（集團）股份有限公司 CHINA PACIFIC INSURANCE (GROUP) CO., LTD. （於中華人民共和國註冊成立的股份有限公司） （股份代號：02601） 海外監管公告 本 公 告 乃 依 據《香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則》第13.10B條的披 露 義 務 而 作 出。 茲 載 列 該 公 告 如 下，僅 供 參 考。 承董事會命 中 國 太 平 洋 保 險（集 團）股 份 有 限 公 司 傅 帆 董事長 香 港，2026年3月27日 於 本 公 告 日 期，本 公 司 執 行 董 事 為 傅 帆 先 生 和 趙 永 剛 先 生；非 執 行 董 事 為 黃 迪 南 先 生、路 巧 玲 女 士、王 他 竽 先 生、王 昱 華 女 士、陳 然 先 生、周 東 輝先生和J ...

Core Insights - China Pacific Insurance (CPIC) is actively addressing the structural challenges posed by the over 300 million elderly population in China by upgrading its strategy from "big health" to "big health and wellness" [1][3] - The company aims to create a comprehensive ecosystem covering elderly care, health, and rehabilitation, establishing a full lifecycle service loop that integrates prevention, diagnosis, treatment, recovery, and wellness [1][3] Group 1: Strategic Initiatives - CPIC held a media open day themed "Encountering Mountains and Seas, Seeing the Future," showcasing its "big health and wellness" strategy and practical achievements [1][2] - The event included various activities such as welcome exchanges, thematic sharing sessions, brainstorming meetings, and cultural experiences, emphasizing the company's commitment to its wellness ecosystem [2] Group 2: Future Directions - CPIC plans to enhance its service offerings by leveraging the strengths of its various service entities, transitioning from a comprehensive approach to specialized services, thereby deepening the integration of wellness services with its insurance business [2] - The company is committed to building a first-class insurance financial service group with market leadership and international competitiveness, focusing on three strategic directions: "big health and wellness, internationalization, and artificial intelligence" [3]

Group 1 - The core theme of the event was "Encountering Mountains and Seas, Seeing the Future," focusing on China Pacific Insurance's (CPIC) strategic layout and practical achievements in the health and wellness sector [1] - CPIC's President Zhao Yonggang emphasized the company's commitment to addressing the structural challenges posed by China's aging population, aiming to upgrade from "big health" to "big wellness" and create a comprehensive ecosystem covering elderly care, health, and rehabilitation [1][3] - The media open day served as a platform for CPIC to showcase its "big wellness" strategy, deepen understanding, and convey confidence and vision for the future [1] Group 2 - During the media open day, CPIC organized various activities, including welcome exchanges, thematic sharing sessions, brainstorming meetings, and cultural experiences, to engage participants [2] - The thematic sharing session highlighted CPIC's diverse services and professional capabilities in its wellness ecosystem, including Taibao Home, Yuanshen Rehabilitation, and Blue Medical Insurance [2] - The brainstorming session focused on enriching the wellness ecosystem and strengthening brand development, while participants experienced cultural activities that showcased the integration of insurance, health, and elderly care [2] Group 3 - The "big wellness" initiative is not only a commercial strategy but also a necessary choice for financial services to benefit the public [3] - The media open day clearly communicated the core content and achievements of CPIC's "big wellness" strategy, demonstrating the company's determination to leverage insurance for public welfare and contribute to building a strong financial nation [3] - Looking ahead, CPIC aims to build a leading insurance financial service group with market influence and international competitiveness, focusing on "big wellness, internationalization, and artificial intelligence" as its strategic directions [3]

Core Insights - China Pacific Insurance (CPIC) is committed to serving national strategies and addressing the structural challenges posed by an aging population of over 300 million in China, viewing "Great Health and Elderly Care" as both a business opportunity and a social responsibility [1] Group 1: Elderly Care Initiatives - CPIC's flagship elderly care community brand, Taibao Home, has established 15 projects across 13 cities, with 14 communities already operational, serving over 3,000 long-term residents and hosting more than 280,000 visitors annually [1] - Taibao Home offers diverse services including medical care, chronic disease management, and community activities, focusing on balanced development in scale, quality, efficiency, and safety [1] Group 2: Rehabilitation and Home Care Services - Yuan Shen Rehabilitation, CPIC's specialized rehabilitation medical service brand, has developed a network with approximately 1,000 planned beds across Xiamen, Jinan, and Guangzhou, with hospitals in Xiamen and Jinan already operational [2] - The "Bai Sui Ju" service brand focuses on home care, providing a "1 housekeeper, 3 services" system to ensure safety, medical care, and companionship for the elderly [2] Group 3: Youth Health Initiatives - Qingqing Growth targets youth and young families with a health promotion plan that includes musculoskeletal health, vision protection, mental health, and weight management, leveraging partnerships with universities and hospitals [2] Group 4: Insurance Products and Services - Blue Medical Insurance has rapidly grown since its launch in 2021, serving over 3 million users and addressing healthcare accessibility and affordability issues through a comprehensive product matrix [3] - Taiyi Housekeeper has established a 24/7 online medical service system, serving over 12 million users and facilitating over 8 million consultations, enhancing diagnostic accuracy and physician efficiency through smart technology [3]

Core Insights - The health insurance market, particularly the million medical insurance, is transitioning from rapid growth to a more competitive and saturated environment, with premium growth slowing significantly [2][4][5] - The million medical insurance, once a growth driver, is now facing challenges such as homogenization, competition from inclusive insurance products, and evolving consumer demands [1][4][5] - A new wave of product iterations is underway, focusing on differentiation and service enhancement to meet consumer needs and adapt to regulatory changes [6][7][10] Market Trends - As of November 2025, the total premium for commercial health insurance reached 943.9 billion yuan, with a year-on-year growth of only 2.39%, indicating a slowdown compared to previous years [2][4] - The commercial medical insurance sector is expected to surpass critical illness insurance for the first time in 2024, with approximately half of its market share attributed to million medical insurance [2][4] Competitive Landscape - The industry is experiencing intense competition characterized by product similarity, with many offerings featuring similar coverage limits and deductibles, leading to a cycle of price competition and service enhancement [4][5] - The mismatch between supply and demand is evident, as current offerings primarily cover standard health insurance needs, leaving gaps in high-end medical services and coverage for non-standard health individuals [4][5][9] Consumer Demand - There is a growing consumer demand for services related to post-operative recovery, chronic disease management, and overall healthcare experience, which contrasts sharply with the current supply of similar insurance products [5][6] - The need for differentiated products that address long-tail demands is becoming increasingly critical as consumers seek more comprehensive health solutions [5][12] Product Innovation - Major insurance companies are launching updated versions of their million medical insurance products, focusing on customer-centric features and expanding coverage to include outpatient medications and high-value drugs [6][7][10] - The integration of rehabilitation costs into core coverage is emerging as a significant trend, reflecting a shift towards addressing long-term healthcare needs [8][9] Future Directions - The future of million medical insurance is expected to focus on three main innovation lines: extending coverage beyond traditional medical scenarios, enhancing service models through digital health platforms, and implementing personalized insurance solutions based on individual health data [13] - The industry is encouraged to find its position within the multi-tiered healthcare system, ensuring effective integration with basic medical insurance and critical illness insurance to provide tangible value to consumers [12][13]

Core Insights - The article highlights the rapid development of a multi-tiered insurance system in China, which includes basic medical insurance, "Hui Min Bao," and commercial health insurance, aimed at meeting diverse healthcare needs of the population [1][6] Group 1: Insurance Coverage and Participation - Over 1.3 billion people are covered by basic medical insurance in China, and "Hui Min Bao" has reached approximately 30 provincial-level administrative regions [1] - By 2025, "Hui Min Bao" participation is expected to exceed 6.45 million in Shanghai, with similar growth in other cities like Shenzhen and Beijing, where participation is projected to surpass 6.15 million and 4.34 million respectively [3] - As of March 2025, "Hui Min Bao" has accumulated compensation payments exceeding 2.2 billion yuan, while "Shenzhen Hui Min Bao" has compensated nearly 230,000 individuals [3] Group 2: Growth in Commercial Health Insurance - The health insurance sector achieved approximately 97.74 billion yuan in premium income in 2024, reflecting a year-on-year growth of about 8.2% [4] - Medical insurance has overtaken critical illness insurance in market share for the first time, indicating its role in supplementing basic medical insurance and covering high-value innovative drugs [4] - Pacific Health Insurance has served over 2 million customers since launching "Blue Medical Insurance" in 2022, with compensation amounts reaching 3.77 billion yuan in the first half of 2025, a 16% increase [4] Group 3: Challenges and Recommendations - Despite the progress, challenges such as insufficient coverage, data silos, and low penetration of commercial insurance remain [6] - Experts suggest breaking down data barriers and establishing secure sharing mechanisms to enhance product pricing and reduce costs [7] - Recommendations include integrating commercial health insurance with basic medical insurance for efficient claims processing and expanding coverage to include various demographics and innovative treatments [7]

Core Insights - The million medical insurance sector has seen significant innovation and upgrades in 2023, with major players expanding coverage to include outpatient treatments and advanced medications [1][2][3] - The competition in the million medical insurance market is intensifying, with companies striving to enhance their offerings to meet evolving consumer demands [5][9] - Despite a slowdown in growth, the market for million medical insurance is expected to continue expanding, driven by increasing healthcare costs and the need for supplementary insurance [10][17] Company Developments - Ant Group's "Good Insurance" series has upgraded its core products to include coverage for specific diseases treated in advanced hospitals and expanded outpatient medication reimbursements [1] - China Life has launched its first 10-year guaranteed renewal product, "Guoshou Kangyue Zhenxiang," which covers outpatient expenses for specific major diseases [2] - ZhongAn Insurance has upgraded its health insurance series, "Zunxiang Esheng" and "Zhongminbao," to include long-term medication coverage and expanded hospitalization benefits [1][2] Market Trends - The million medical insurance market has evolved from high-end and mid-range medical insurance to more affordable options, with products like "Zunxiang Wuyou" and "Eshengbao" gaining popularity [4][9] - The market has seen a shift towards covering outpatient treatments and advanced therapies, with many products now offering zero deductible options [7][8] - The overall scale of the million medical insurance market has grown from negligible in 2016 to approximately 600 billion yuan by 2023, accounting for about 20% of the medical insurance market [9][13] Competitive Landscape - Major players like Renbao Health, ZhongAn, and Ping An Health dominate the market, with their products collectively accounting for a significant share of the total premium income [14][15] - The competitive environment has led to a focus on improving renewal conditions and expanding coverage, with many products now offering guaranteed renewal periods [5][6] - The introduction of lower-cost alternatives like "Hui Min Bao" has created additional pressure on million medical insurance products, although its impact appears to be diminishing [13][21] Future Outlook - The potential for growth in the million medical insurance sector remains strong, with expectations that it could reach a scale of 1.7 to 2.6 trillion yuan by 2029 [18] - The increasing pressure on basic medical insurance is likely to drive demand for commercial health insurance, positioning million medical insurance as a crucial supplement [17][23] - However, challenges such as low claims payout ratios and the need for better customer satisfaction must be addressed to ensure sustainable growth [22][23]