On March 28, China Reinsurance held the 2023 annual results conference. Chairman and Chunlei, Vice President and Board Secretary Zhu Xiaoyun, Assistant President and Chief Actuator Tian Meipan, and Wang Zhongyao, Deputy General Manager of China Real Estate Insurance, Li Xiaomin, proposed president of China Land Insurance, and Li Wei, general manager of China Re Asset, attended the conference to introduce in detail the company's 2023 business performance, strategic implementation results and future development direction. The press conference was hosted by Zhu Xiaoyun and held in the form of “Hong Kong offline conference+teleconference+live video broadcast”. Through full communication and interaction with investors, analysts and domestic and foreign media, the capital market's understanding of the company's medium- to long-term investment value was further enhanced.

In 2023, in the face of a complex and changing market environment, China Reinsurance will focus on building a “world-class comprehensive reinsurance group”” The strategic goal and “three-step” strategic arrangement, adhering to the general tone of “steady progress, value improvement”, steady growth in premium income, steady growth in underwriting profits, steady growth in investment income, overall improvement in the quality and efficiency of the country's service strategy, acceleration of digital transformation, steady and effective risk management and control, and significant improvement in management resilience and development quality. World-class construction has taken solid steps, steadily implementing the first step in a new journey of high-quality development.

Chairman He Chunlei introduced the performance situation and future prospects

In 2023, China's reinsurance premium income grew steadily, and its market position continued to stabilize. Group's consolidated total premium incomeRMB 176.849 billion, up 4.2% year on year; the Group's consolidated insurance service revenue was RMB 99.755 billion, up 11.8% year on year. Property reinsurance's domestic business market share achieved “six consecutive increases”, and total premium income from overseas business increased 18.7% year on year; personal reinsurance continuously optimized its business structure, and its market share remained at the top of the industry; the growth rate of direct property insurance premium income exceeded the market average.

China Reinsurance has continuously optimized its profit structure, and underwriting efficiency has improved markedly. The Group's consolidated underwriting profit reached a record high, with a year-on-year increase of more than 900%. The overall cost ratio of all business segments declined year over year. Among them, the comprehensive cost rate for the domestic property reinsurance business was 99.53%, down 0.23 percentage points from the previous year; the comprehensive cost rate for the overseas property reinsurance business was 85.74%, down 8.29 percentage points from the previous year; the comprehensive cost rate for the personal reinsurance insurance insurance business was 97.12%, down 0.55 percentage points from the previous year; and the comprehensive cost rate for the direct property insurance business was 100.78%, down 2.28 percentage points from the previous year.

China Reinsurance adheres to the concept of long-term investment and value investment, further promotes coordination and interaction in asset liability management, carefully optimizes the asset allocation structure, and the Group's net return on investment4.28%, an increase of 0.62 percentage points over the previous year. Long-term income continued to consolidate and strengthen; the total return on investment was 2.77%, and fine management improved steadily. The scale of asset management continues to grow, and third-party business development is showing new momentum.

Thanks to the efforts of both underwriting and investment, China Reinsurance's operating efficiency improved markedly, achieving net profit attributable to shareholders of the parent company from the consolidated group of 5.652 billion yuan, an increase of 5.977 billion yuan over the previous year. The weighted average return on net assets (ROE) was 6.22%, an increase of 6.58 percentage points over the previous year. The dividend is 0.042 yuan per share, and the dividend rate corresponding to recent stock prices has reached more than 8%.

The risk management and control of China Reinsurance is steady and effective, and the comprehensive solvency of each business entity is sufficient. China Reproduction Insurance is 246%, China Relife Insurance 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 the Bayesian rating of “A (excellent)”, and the rating outlook is stable.

China will continue to implement the concept of sustainable development, focus on its main business, give full play to its role as an economic shock absorber and social stabilizer, effectively integrate the company's business development into the overall national strategic development, explore new business scenarios and growth points, and drive business development through innovation. In 2023, the company's risk insurance coverage in key areas of the national strategy reached 67 trillion yuan, an increase of 11.3%; helped Health China serve 210 million people, an increase of 78.5%; and served 3.72 million micro, small and medium-sized enterprises, an increase of 150.8%.

In terms of serving green transformation and development, the company guarantees the commercial operation of the world's first fourth-generation nuclear power plant and provides nearly 400 billion yuan of risk protection for the entire life cycle of green energy projects such as wind power and photovoltaics.

In terms of serving the modernization of social governance, the company innovated and launched exponential catastrophe insurance products, assumed 25.8 trillion yuan of domestic earthquake, flood and typhoon risk liability, and acted as the main reinsurer in more than 80% of catastrophe pilot projects.

In terms of serving comprehensive rural revitalization, the company implemented the country's first exclusive reinsurance contract for rural revitalization, fishing boats, etc., to achieve full cost insurance and income insurance coverage for the three major grain crops in major grain-producing counties across the country. The service guarantees high-standard farmland construction in 16 provinces across the country, with a market share of more than 50%.

In terms of service joint construction of the “Belt and Road”, the company provided more than 100 billion yuan of risk guarantees for hundreds of “Belt and Road” projects. The underwritten Carlot hydropower project was selected for the 3rd “Belt and Road” International Cooperation Summit Forum's practical cooperation project list.

In 2023, China will iteratively optimize the “digital re-engineering” strategy, forming a new “one, two wings” development pattern, injecting strong momentum into high-quality development. Further improve the top-level design, set up a digital transformation committee and digital transformation office, officially release the digital transformation topology and road map, complete the upgrade management of the mid-scale disaster and the official operation of the China Re-digital Division.

Continue to accelerate digital intelligence, accelerate the construction of the Group's data center and business platform, and drive group control with data;

Accelerate the construction of data standards and data governance systems to enhance the value of data assets;

Accelerate the construction of digital platforms and information security systems, and continuously consolidate the digital foundation;

Iterative catastrophe combination risk management platform to achieve real-time catastrophe pricing and quantitative management;

Put into operation a project to implement the new accounting standards in the Group system to improve the level of refined business management.

At the same time, the company continues to deeply cultivate platform empowerment, iteratively upgrade China's catastrophe model with independent intellectual property rights, take the lead in promoting the Ministry of Science and Technology's “Major Natural Disaster Prevention and Public Safety” national key research and development plan, release the industry's first comprehensive agricultural insurance technology platform “Re·Go”, upgrade the NEV vehicle insurance pricing risk control model “Again”, collaborate with direct insurance customers to broaden the application scenarios of blockchain trading platforms, and promote IDI and security insurance platforms. The first-mover advantage of technology is being transformed into a competitive advantage in the market.

Looking forward to the future, in the face of new opportunities and challenges, China Reinsurance will continue to adhere to the general tone of “progress in stability and value improvement”, adhere to the business philosophy of “development on a large scale, increase efficiency, and invest steadily”, accelerate reform and innovation, strengthen quality and efficiency, make every effort to take new steps in high-quality development, make every effort to promote national service strategies to highlight new actions, fully promote digital transformation into a new engine, and strive to achieve new results in risk control compliance management, accelerate the construction of a world-class comprehensive reinsurance group, and strive to continuously create stable investment returns for shareholders.