Paper news reporter Hu Zhiting
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China Reinsurance, which previously expected net profit in the first half of this yearyear-on-year to decrease by about 40% to 50%, disclosed its semi-annual report exceeding expectations.
On August 29, China Reinsurance Group Co., Ltd. (China Reinsurance, 1508.HK) released the 2022 semi-annual report showing that in the first half of this year, China Reinsurance achieved a total premium income of 87.98 billion yuan, a year-on-year increase of 5.6%; The net profit for shareholders of the parent company was 1.681 billion yuan, a year-on-year decrease of 58.1%.
Regarding the reasons for the decline in net profit, China Reinsurance stated that, firstly, due to factors such as the rebound of the new crown epidemic, geopolitical conflicts, and macroeconomic pressure, the capital market fluctuated sharply, and investment income declined year-on-year; The investment income of Great Wall Assets dropped significantly year-on-year.
China Reinsurance also explained that there is a difference between the above-mentioned net profit data attributable to shareholders of the parent company and the company's previously disclosed "Announcement on Pre-reduction of Performance in the First Half of 2022", mainly because Great Wall Assets announced its audited report on August 26, 2022. Financial data for 2021.
China Reinsurance stated that based on the forecast data of Great Wall Assets’ future operating performance provided to it by the management of Great Wall Assets, after careful assessment, China Reinsurance made provision for impairment of 548 million yuan for the Great Wall Assets project , resulting in China Reinsurance’s 2022 mid-term The decline in net profit attributable to shareholders of the parent company increased, so that it exceeded the range of 40% to 50% of the decline disclosed in the performance pre-reduction announcement, reaching 58.1%. Excluding the influence of the above-mentioned factors of Great Wall Assets, the company's performance in the first half of the year is consistent with the information in the performance pre-reduction announcement.
China Reinsurance holds a total of 6.5% of shares of Great Wall Assets through its subsidiaries, China Re Insurance and Continent Insurance. 澎湃News noticed that the 2021 annual report disclosed by Great Wall Assets on August 26 showed that the company achieved a net profit of -8.562 billion yuan attributable to its parent last year, turning from profit to loss. China Reinsurance also stated in its semi-annual report that on August 26, Great Wall Assets provided the company with its audited financial statements for 2021, which were different from the financial statements previously provided to the group. The results calculated by method need to be adjusted accordingly. At the same time, the company implements the relevant regulations of the Ministry of Finance on the salary management of state-owned financial enterprises, and determines the salary of the year based on the operating conditions in 2021. Therefore, the company's salary in 2021 also needs to be revised accordingly.
In the first half of this year, the total investment income of China Reinsurance was 4.352 billion yuan, a year-on-year decrease of 57.8%, and the annualized total investment yield was 2.76%, a year-on-year decrease of 3.79 percentage points; the net investment income was 7.606 billion yuan, a year-on-year increase of 5.6%, and the annualized net The return on investment was 4.82%, a year-on-year increase of 0.24 percentage points. According to the semi-annual report of
, in the first half of this year, China’s reinsurance business structure continued to optimize, domestic property reinsurance non-auto insurance business increased by 42.1% year-on-year, accounting for an increase of 6.6 percentage points, of which emerging business increased by 52.9% year-on-year; overseas property reinsurance and bridge insurance The business increased by 17.7% year-on-year; the domestic personal reinsurance protection business increased by 12.6% year-on-year, and its proportion increased by 7.3 percentage points; the domestic property insurance direct insurance non-auto insurance business increased by 9.2% year-on-year, and its proportion increased by 1.9 percentage points, accounting for more than half for the first time.
In terms of underwriting benefits, in the first half of this year, China Reinsurance’s property insurance direct insurance business achieved a substantial reduction in underwriting losses; Qiaoshe still achieved good underwriting profits despite prudently accruing reserves for Russia-Uzbekistan conflicts and bearing natural catastrophe losses .
China Reinsurance is the only state-owned professional reinsurance company in China established on the basis of the original China Insurance Reinsurance Co., Ltd. (established in January 1996) with the approval of the State Council. A wholly state-owned insurance group company established on the basis of the original China Reinsurance Company.
Editor in charge: Zheng Jingxin Picture editor: Jiang Lidong
Proofreading: Ding Xiao