According to the Zhitong Finance App, China Reinsurance (01508) announced its annual results for the year ended December 31, 2023. The group achieved total operating income of 109.395 billion yuan (RMB, same below) during the period, an increase of 13.45%; net profit to mother of 5.652 billion yuan, a net loss to mother of 325 million yuan in the same period of the previous year, which turned a year-on-year loss into a profit; basic profit of 0.13 yuan per share; plans to distribute a final dividend of 0.042 yuan per share.

According to the announcement, the main reasons for turning net profit from loss to profit were: first, efforts to improve operating efficiency, and efforts on both underwriting and investment sides to achieve improved underwriting performance and year-on-year increase in investment income; second, it was affected by the low base for the same period in 2022.

In 2023, China will continue to adhere to the general tone of “progress in stability and value improvement”, establish the business philosophy of “large-scale development, effective underwriting, and steady investment”, and respond positively to the complex and changing market environment. Management resilience and quality of development have increased markedly, and high-quality development has achieved new results. First, insurance service revenue grew steadily, achieving 99.755 billion yuan in insurance service revenue, an increase of 11.8% over the previous year. Second, operating efficiency improved markedly, including total investment income of 9.304 billion yuan, an increase of 519.0% over the previous year, and the contribution to underwriting profit increased sharply. The Group's solvency and international ratings remained stable. The Group continued to maintain a Bayesian rating of “A (Excellent)” and a S&P global rating of “A” during the reporting period, and its financial situation remained stable.

In 2023, the property reinsurance division's insurance service revenue was 43.309 billion yuan, an increase of 18.7% over the previous year, accounting for 42.6% of the Group's insurance service revenue (not taking into account inter-division offsets). The main reason for the increase in insurance service revenue is that the Group is actively expanding its business by seizing the opportunities and allocating opportunities of rising market rates. Net profit of 3,065 billion yuan, an increase of 3,078 billion yuan over the same period last year. The main reason for the increase in net profit is that the Group adheres to a high-quality development strategy, actively grasps market opportunities to develop advantageous businesses, and underwriting efficiency has improved markedly; at the same time, the Group's impairment accrual of joint venture investments in 2022 was sufficient due to prudential principles, and impairment charges decreased in 2023, and investment income increased significantly year-on-year.

As the largest professional property reinsurance company in China, the Group provides diversified property reinsurance risk protection in response to the business characteristics of the domestic market, covering a wide range of property insurance types in China, mainly including agricultural insurance, motor vehicle insurance, corporate property insurance, liability insurance and engineering insurance. The Group actively grasps market transformation and development opportunities, and continues to vigorously expand emerging business fields such as short-term health insurance, construction project quality potential defect insurance (IDI), engineering performance guarantee insurance, safety and liability insurance, China's overseas interest project insurance, and cybersecurity insurance, achieving a total split premium revenue of 2,869 billion yuan.

In 2023, the Group will continue to adhere to the customer-oriented concept, maintain stable cooperative relationships with major domestic property insurance companies, and continue to enhance the user experience through business cooperation, technical exchanges and customer service, deliver insurance value, and promote the in-depth development of cooperative relationships. With customer needs as the core, the Group continues to thoroughly implement the “direct integration” business philosophy, innovate and develop service concepts and channels, continuously improve customer service system construction, and explore innovative customer service model practices. By the end of the reporting period, the Group had maintained business dealings with 87 domestic property insurance companies, with a customer coverage rate of 97.8%; in the contract business where the Group participated, the number of contracts acting as the chief reinsurer accounted for more than 40%. The Group's customer coverage rate and number of chief reinsurer contracts have consistently ranked first in the domestic market.