On March 28, China Re held a 2023 annual results conference. Chairman He Chunlei, Vice President and Secretary of the Board of Directors Zhu Xiaoyun, Assistant to the President and Chief Actuary Tian Meipan, Deputy General Manager of China Re Property and Casualty Insurance Wang Zhongyao, Proposed President of China Dadi Insurance Li Xiaomin, and General Manager of China Re Assets Li Wei attended the meeting. The company's 2023 operating results, strategic implementation results and future development direction were introduced in detail. This press conference was hosted by Zhu Xiaoyun and held in the form of "Hong Kong offline conference + telephone conference + live video broadcast". Through full exchanges and interactions with investors, analysts and domestic and foreign media, the conference further enhanced the capital market's understanding of the company's medium and long-term investment value.

In 2023, in the face of a complex and ever-changing market environment, China Reinsurance focuses on the strategic goal of building a "world-class comprehensive reinsurance group" and the "three-step" strategic arrangement, and adheres to the general tone of the work of "seeking progress while maintaining stability and improving value". Premium income has grown steadily, underwriting profits have reached a new high, investment income has grown steadily, the quality and efficiency of serving the country have been comprehensively improved, digital transformation has been accelerated, risk management and control are stable and effective, and operational resilience and development quality have been significantly enhanced. We have taken solid steps towards world-class construction and achieved steady and solid results in the first step in a new journey of high-quality development.

Chairman He Chunlei introduced the performance and future prospects

Significant growth in operating results

In 2023, China's reinsurance premium income will grow steadily and its market position will continue to be solid. The Group's consolidated total premium income was 176.849 billion yuan, a year-on-year increase of 4.2%; the Group's consolidated insurance service income was 99.755 billion yuan, a year-on-year increase of 11.8%. The market share of property reinsurance's domestic business has achieved "six consecutive increases", and the total premium income of overseas business has increased by 18.7% year-on-year; personal reinsurance has continuously optimized its business structure, and its market share has ranked among the top in the industry; the growth rate of original premium income of property insurance direct insurance has exceeded the market average level.

China Reinsurance has continuously optimized its profit structure and significantly improved its underwriting efficiency. The Group's consolidated underwriting profit hit a new high, with a year-on-year increase of more than 900%. The comprehensive cost ratios of all business segments decreased year-on-year. Among them, the comprehensive cost ratio of property reinsurance domestic business was 99.53%, down 0.23 percentage points year-on-year; the comprehensive cost ratio of property reinsurance overseas business was 85.74%, down 8.29 percentage points year-on-year; The comprehensive cost ratio of personal reinsurance protection business was 97.12%, down 0.55 percentage points year-on-year; The comprehensive cost ratio of property insurance direct insurance business was 100.78%, a year-on-year decrease of 2.28 percentage points.

China Re adheres to the concepts of long-term investment and value investment, deeply promotes the coordinated interaction of asset-liability management, and prudently optimizes the asset allocation structure. The Group's net investment return rate is 4.28%, a year-on-year increase of 0.62 percentage points, and long-term returns continue to be consolidated and enhanced; the total investment return rate is 2.77%, refined management has achieved steady improvement. The scale of asset management continues to grow, and the development of third-party businesses shows new development momentum.

With the efforts of both underwriting and investment, China Reinsurance's operating efficiency has been significantly improved, achieving a consolidated net profit attributable to shareholders of the parent company of 5.652 billion yuan, a year-on-year increase of 5.977 billion yuan. The weighted average return on equity (ROE) was 6.22%, an increase of 6.58 percentage points year-on-year. The dividend per share is 0.042 yuan, and the dividend yield corresponding to the recent stock price has reached more than 8%.

China's reinsurance risk management and control is stable and effective, and the comprehensive solvency of each business entity is sufficient. China Reinsurance is 246%, China Reinsurance is 215%, Dadi Insurance is 257%, and the group merger is 191%. The company continues to maintain the S & P global rating of "A" and Bayes 'rating of "A (Excellent)", and the rating outlook is stable.

Serving the comprehensive improvement of quality and efficiency of national strategies

China Re continues to practice the concept of sustainable development, focuses on its main responsibilities and main businesses, gives full play to its role as economic shock absorber and social stabilizer, effectively integrates the company's operating development into the overall national strategic development, explores new business scenarios and growth points, and innovates drive business development. In 2023, the company's risk insurance coverage in key national strategic areas will reach 67 trillion yuan, an increase of 11.3%; it will help healthy China serve 210 million people, an increase of 78.5%; and it will serve 3.72 million small, medium and micro enterprises, an increase of 150.8%.

In terms of self-reliance and self-improvement in service science and technology, the company has taken the lead in landing in China to specialize in new reinsurance exclusive contracts, actively promote network security insurance, and provide reinsurance protection for the first commercial flight of Chinese-made C919 aircraft and the launch of national key satellites. In terms of service green transformation and development, the company ensures the commercial operation of the world's leading fourth-generation nuclear power plants, providing life-cycle risk protection of nearly 400 billion yuan for wind power, photovoltaic and other green energy projects. In terms of serving the modernization of social governance, the company innovated and launched index catastrophe insurance products, which assumed 25.8 trillion yuan of domestic earthquake, flood and typhoon risk responsibility, and served as the main reinsurer in more than 80% of the catastrophe pilot projects. In terms of serving the overall revitalization of rural areas, the company has taken the lead in landing rural revitalization, fishing vessels, fisheries and other reinsurance exclusive contracts, realizing full cost insurance and income insurance coverage for three major grain crops in major grain counties in China. Service guarantees the construction of high-standard farmland in 16 provinces across the country, with a market share of more than 50%. In terms of serving the co-construction of "Belt and Road Initiative", the company provided more than 100 billion yuan of risk protection for hundreds of joint "Belt and Road Initiative" projects, and the insured Carlot Hydropower Station project was selected into the list of practical cooperation projects of the third "Belt and Road Initiative" International Cooperation Summit Forum.

Digital transformation accelerates

In 2023, China re-Insurance iteratively optimized the "digital re-development" strategy, forming a new development pattern of "one body and two wings", injecting strong momentum into high-quality development. We will further improve the top-level design, set up a digital transformation committee and a digital transformation office, formally release the digital transformation topology map and roadmap, and complete the catastrophe upgrade management and the official operation of China re-Mathematical Science. Continue to accelerate digital intelligence, speed up the construction of group data center and business platform, drive group management and control by data; accelerate the construction of data standards and data governance system to enhance the value of data assets; speed up the construction of digital base and information security system; constantly consolidate the digital foundation; iterative catastrophe portfolio risk management platform to achieve real-time catastrophe pricing and quantitative management Put into production and operate the new accounting standards implementation project of the group system to improve the level of business fine management. At the same time, the company continues to cultivate platform capacity, iteratively upgrade China's catastrophe model with independent intellectual property rights, and take the lead in promoting the national key research and development plan of "major natural disaster prevention, control and public safety" of relevant state departments. take the lead in releasing the comprehensive agricultural insurance technology platform "re-work" in the industry, upgrade the new energy vehicle insurance pricing risk control model "another way", and cooperate with direct insurance customers to broaden the application scene of the block chain trading platform. To promote the construction and promotion of IDI and liability insurance platform, the technology first-mover advantage is being transformed into market competitive advantage.

Looking to the future, in the face of new opportunities and challenges, China Reinsurance will continue to adhere to the general tone of "seeking progress while maintaining stability and improving value" and adhere to the business philosophy of "development of scale, underwriting increased efficiency, and stable investment". Accelerate reform and innovation, strengthen quality improvement and efficiency improvement, make every effort to promote new steps in high-quality development, make every effort to serve the national strategy to demonstrate new achievements, make every effort to promote digital transformation into a new engine, and make every effort to promote risk control and compliance management to achieve new results. Accelerate the construction of a world-class comprehensive reinsurance group and strive to continue to create stable investment returns for shareholders.

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