Share This

Public company info - China Reinsurance (Group) Corporation - H Shares , 01508.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

China Reinsurance (Group) Corporation - H Shares, 01508.HK - Company Profile
Chairman Yuan Linjiang
Share Issued (share) 6,679,000,000
Par Currency Renminbi
Par Value 1.0
Industry Insurance
Corporate Profile Business Summary: The Group is mainly engaged in property and casualty reinsurance, life and health reinsurance, primary property and casualty insurance, asset management and other businesses. Performance for the year: The gross written premiums amounted to RMB144,973 million, representing a year-on-year increase of 18.6%. Net profit attributable to equity shareholders of the parent company for the year amounted to RMB6,049 million, representing a year-on-year increase of 62.2%. Business Review Domestic P&C Reinsurance Business Domestic P&C reinsurance business mentioned in this section refers to domestic P&C reinsurance business operated by China Re P&C. In 2019, reinsurance premium income from The group’s domestic P&C reinsurance business amounted to RMB28,723 million, representing a year-on-year increase of 15.0%. The combined ratio was 101.76%, representing a year-on-year increase of 2.38 percentage points. Of such combined ratio, the loss ratio and expense ratio were 61.30% and 40.46% respectively, representing a year-on-year increase of 5.47 percentage points and a year-on-year decrease of 3.09 percentage points respectively. Barring the impact of underwriting losses caused by the African swine fever, the combined ratio was 99.32%, which remained stable as compared to that of the last year. In terms of type of reinsurance arrangement and form of cession, The group’s domestic P&C reinsurance business primarily consisted of treaty reinsurance and proportional reinsurance respectively, which was generally in line with the business mix in the domestic P&C reinsurance market. Meanwhile, as a result of The group’s proactive development, the reinsurance premium income from The group’s facultative reinsurance business amounted to RMB1,763 million, representing a year-on-year increase of 31.9% and an increase of 0.7 percentage points in the proportion of domestic P&C reinsurance business. In terms of business channels, by virtue of The group’s good relationship with domestic clients, the majority of The group’s domestic P&C reinsurance business was on primary basis. Lines of business As the largest domestic specialised P&C reinsurance company in the PRC, The group offer a wide variety of P&C reinsurance coverage catering to the business characteristics of the PRC market. The group’s lines of business cover a wide range of P&C insurance types in the PRC, primarily including motor, agriculture, commercial and household property, liability and engineering insurance. The group actively captured the opportunities brought by the transformation and development of the market and vigorously developed non-motor reinsurance business and the proportion of non-motor reinsurance business in The group’s domestic P&C reinsurance business for the year 2019 increased by 5.8 percentage points on a year-on-year basis, resulting in a further optimised business structure. In particular, emerging businesses such as first piece (set)/new material comprehensive insurance, construction inherent defects insurance (IDI), short-term health insurance, catastrophe insurance, Chinese Interest Abroad projects insurance, construction surety bond insurance and customs bond insurance achieved groundbreaking growth, with reinsurance premium income of RMB1,254 million and a year-on-year increase of 56.1%, which further strengthened The group’s advantages in developing the emerging business fields. Overseas P&C Reinsurance and Chaucer Business Overseas P&C reinsurance business in this section includes overseas P&C reinsurance business operated by China Re P&C, Singapore Branch, and China Re Syndicate 2088, as well as overseas primary P&C insurance business operated by China Re Syndicate 2088. Chaucer business refers to overseas P&C reinsurance and overseas primary P&C insurance business operated by the entities of Chaucer. In 2019, gross written premiums from The group’s overseas P&C reinsurance and Chaucer business amounted to RMB14,467 million (before intra-segment eliminations), representing a year-on-year increase of 248.7%, mainly due to the inclusion of Chaucer business, which significantly increased the total overseas business scale. The combined ratio was 101.32%, representing a year-on-year decrease of 0.96 percentage points. Of such combined ratio, the loss ratio and expense ratio were 64.02% and 37.30% respectively, representing a year-on-year decrease of 3.38 percentage points and a year-on-year increase of 2.42 percentage points respectively. Overseas P&C Reinsurance Business In 2019, gross written premiums from The group’s overseas P&C reinsurance business amounted to RMB4,853 million (before intra-segment eliminations), representing a year-on-year increase of 17.0%. The combined ratio was 104.26%, representing a year-on-year increase of 1.98 percentage points. Of such combined ratio, the loss ratio was 72.91%, representing a year-on-year increase of 5.51 percentage points, mainly due to the impact of catastrophe losses caused by typhoons in Japan; and the expense ratio was 31.35%, representing a year-on-year decrease of 3.53 percentage points, mainly due to the reduction of management expenses resulting from the transfer of China Re Syndicate 2088’s management agency to Chaucer. In terms of type of business, treaty reinsurance continued to dominate The group’s overseas P&C reinsurance business. The proportion of facultative reinsurance and primary insurance business increased as a result of a significant expansion in facultative reinsurance business written by the Singapore Branch and an increase in primary insurance business through Lloyd’s distribution channel. In terms of lines of business, The group’s overseas P&C reinsurance business primarily provided coverage for non-marine, specialty and liability reinsurance. Business portfolio consisted mainly of short tail business. The group achieved rapid growth in specialty and non-marine reinsurance business. The group also took advantage of the Lloyd’s distribution channel to expand primary liability business in order to achieve better balance and diversification of the overseas business portfolio. Chaucer Business In 2019, gross written premiums from Chaucer amounted to RMB9,614 million. The combined ratio was 99.25%1 . Of such combined ratio, the loss ratio and expense ratio were 57.78% and 41.47% respectively. The group took advantage of the opportunities provided by the increased rates in certain business areas in the year and allocated more capacity to support a steady growth in written premiums. By adhering to the profit orientation, The group actively adjusted The group’s business mix by reducing The group’s participation in underperforming segments. The overall quality of The group’s underwriting portfolio continued to improve. The premium of contracts led by Chaucer accounted for approximately 42% of its gross written premiums. Chaucer is one of a limited number of Lloyd’s market entities with substantial contract leadership capabilities. In terms of type of business and lines of business, Chaucer business primarily consists of treaty reinsurance, facultative reinsurance and primary insurance. Within each of these, the treaty reinsurance business primarily provided coverage for property, specialty and liability reinsurance worldwide. The facultative reinsurance and direct insurance business primarily provided coverage for marine, space and aviation, political risk/credit, political violence, energy, property and liability insurance worldwide. CNIP Business The Group Company, together with China Re P&C and China Continent Insurance, underwrite global nuclear insurance business via CNIP. In 2019, The group’s reinsurance premium income from business via the CNIP platform amounted to RMB141 million. Prospects: Market Environment Looking ahead to 2020, China’s economy is expected to maintain a stable development, characterised with the upgrading and transformation of traditional industries and prosperity of emerging industries. The insurance industry will return to its roots, optimise its structure, shift its focus onto the real economy, maintain proper prudence against financial risks, and enjoy a favourable trend of development in the long term. The insurance industry will be further opened up, while the market competition becoming increasingly fierce. Technological changes will be deeply integrated with insurance, and new technologies will improve the role of insurance in customer service, product development, loss prevention and risk mitigation, while promoting the restructuring, transformation and upgrading of the industrial ecosystem. In the primary P&C insurance market, it is expected that the industry’s growth driver and focus will continue to shift faster to non-motor insurance. Following the implementation of the comprehensive reform for motor insurance, the motor insurance market will experience slow growth in premium volume with operational differentiation among market entities. Further development of non-motor insurance business will remain to be driven by key factors such as policy support, financial subsidy and consumption upgrade. Agriculture insurance, liability insurance, health insurance and surety insurance will maintain high growth momentum. For the primary life and health insurance market, the life insurance industry should be able to maintain a favourable trend in the long term with transformation and development, refocusing on protection function and strengthening supply-side reform of products and services. As a result, there are growing trends in product innovation and upgrade, service integration, interaction of online and offline channels, and increasing investment in insurtech. In 2019, China recorded GDP of nearly RMB100 trillion with GDP per capita exceeding USD10,000. The Executive Meeting of the State Council issued the Opinions on Facilitating the Development of Commercial Insurance in Social Service Sector （《關於促進社會服務領域商業保險發展的意見》）. The insurance regulator depicted a picture of RMB2 trillion of health insurance volume and RMB6 trillion of pension reserves by the end of 2025. Due to the outbreak of COVID-19 pandemic at the beginning of 2020, the traditional channel and the insurance promotion campaign at the year beginning were adversely affected. The pandemic outbreak is going to accelerate the transformational development of the industry by further motivating the demand for health insurance and raising the importance of online technology application and digital transformation. For the P&C reinsurance market, comprehensive reform for motor insurance will be carried out in the primary insurance market in near term, and the non-motor insurance business will maintain rapid growth, which will continue to facilitate the transformation and adjustment of the domestic P&C reinsurance market. The proportion of non-motor insurance businesses will further increase. Reinsurance businesses from agriculture insurance, liability insurance and accident and short-term health insurance are expected to maintain rapid growth; innovative businesses such as construction quality inherent defects insurance (IDI), catastrophe insurance and insurance business for the Belt and Road Initiative will maintain fast growth. Reinsurance will make more contributions in supporting the real economy, and risk management and innovation capabilities will become increasingly more important in market competition. Affected by a series of catastrophic events in recent years and other factors, the reinsurance rates of overseas P&C insurance market will generally remain stable, and it is expected to experience an upward trend in certain areas and certain types of insurance. For the life and health reinsurance market, ceding demand for domestic health insurance will remain robust, and the integration of products and services will continue to be popular. Insurtech and service innovation will become a new competition focus for the protection-type business. Under the environment of low interest rates and with the implementation of the C-ROSS Phase II project, the demand of savings-type reinsurance and financial reinsurance business will remain stable, and the number of market participants will continue to increase, which will further intensify the market competition. For overseas markets, due to the great uncertainty in the exchange rate of RMB, the RMB-denominated policies in Hong Kong are expected to remain sluggish while foreign currency denominated business may embrace certain development opportunities. For development of capital markets and the deployment of insurance funds, the global economy is under profound adjustments in 2020. Affected by the COVID-19 pandemic, China’s economy is facing huge downward pressure in the short-term, and the replacement of old macroeconomic growth drivers with the new ones will continue, with the supply-side structural reform of the financial sector further deepening. During the transformation, the release of credit risks and the disturbance of risk appetite will remain the important factors affecting the performance of capital markets. Under the environment of low interest rates, as well as the complicated economic and financial situation, the assets and liabilities matching of insurance funds will remain under pressure, bringing challenges to insurance asset allocation and investment. It is critical to leverage strength on operation of insurance funds, tactic assets allocation ability, and integration of medium- and long-term vision with short-term strategies, along with the concept of long-term investment and value investment. Outlook of China Re Group China Re Group will adhere to the three major strategies of “platform operation, technology advancement and globalisation”, implement the operational strategy of “stabilising growth, adjusting structure, controlling risks and increasing profitability” and endeavour to achieve the goals of the “13th Five-Year” Plan toward the general tone of making progress while ensuring stability, thereby fully propelling the high-quality development of the Group to a new level. For the P&C reinsurance business, The group will continue to facilitate the transformation and upgrading of The group’s operating model, diversify The group’s product offering and optimise the customer service system. The group will strengthen The group’s advantages in traditional businesses, continuously improve the innovation mechanism, expand the business deployment in emerging fields, and put effort in creating new business growth drivers. The group will also strengthen the collaboration within the Group and between domestic and overseas business, increase external cooperation, establish a development ecosystem and enhance The group’s core competitiveness. The group will adhere to being customer-centric and improve The group’s customer service standard and quality by promoting demand oriented and customised service solutions. The group will also facilitate the in-depth integration of overseas business and establish an integrated platform of international business to support the high-quality development of overseas business. The group will accelerate the digital transformation, continuously facilitate the technology upgrade of catastrophe modelling framework and promote its commercial application, and accelerate the implementation of artificial intelligence and blockchain technology in trading. For the life and health reinsurance business, The group will actively seize the policy opportunities and endeavour to achieve high-quality business development. In regard to the protection-type reinsurance business, The group will continue to focus on the “Data +” and “Product +” strategies, expand business scale, optimise product structure, improve profitability and efficiency, and drive product innovation and upgrade. The group will further integrate The group’s business with new diagnosis and treatment methods, new medicines and new medical devices. Also, The group will continue to strengthen risk prevention and management to ensure sustainable development. In regard to the savings-type reinsurance business, The group will strictly control the transaction cost, enhance the asset-liability management, utilise The group’s advantages of “(domestic and overseas) dual-markets” and “(business and investment) dual-platforms” to strengthen the collaborative development of both domestic and overseas markets. In regard to the financial reinsurance business, The group will meet The group’s customer need with innovative solutions. The group will manage the existing business and develop new business on the purpose of capital optimisation under the principles of risk control and priority to efficiency. For the primary P&C insurance business, The group will continuously optimise product structure, facilitate development, and further consolidate The group’s market position. In respect of the motor insurance, The group will continuously put efforts in the technology empowerment and refined management, optimise the renewal and claims process, improve the business quality and strengthen the cost management and control to achieve high-quality development of motor insurance business. In respect of the non-motor insurance, The group will seize the right timing of non-motor insurance favourable development and continue to deepen the “Non-motor Insurance Business” strategy, strive to make breakthroughs and achieve balanced development in policy-related and profitable insurance types. The group will promote continuous optimisation of the core business system “Somersault Cloud” and continue to promote the in-depth implementation of the customer-oriented comprehensive operation model. The group will fully enhance the abilities of online operation, digitisation and intelligent technology application, strengthen the abilities of technology innovation and application and facilitate transformation, so as to build a brand new model for customer management. For the asset management business, The group will continue to follow the orientation of internationalisation, marketisation and professionalisation to further enhance The group’s investment management capabilities. The group will continue to adhere to a steady and prudent investment concept and strengthen The group’s judgement on the key factors such as the economic situation, market environment and interest rate trends, aiming to achieve more forward-looking and effective asset allocation. The group will attach great importance to risk management, further increase The group’s awareness of proactive risk management and continuously conduct comprehensive risk management to achieve more forward-looking, targeted and effective risk management. The group will strengthen the collaboration among different investment functions of the system, tap into the potential of business synergy with the main insurance businesses and make due efforts to develop third-party business to support the high-quality development of China Re Group.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.