PICC Property and Casualty Company (2328) H1 2024 earnings summary

Executive summary

• Insurance revenue rose 6.0% year-over-year to RMB 261.63bn, with net profit attributable to equity holders up 13.7% to RMB 23.40bn and ROE at 9.3%, up 0.7pp.

• Achieved original insurance premium income of RMB311,996 million, up 3.7% year-over-year, maintaining a 34.0% market share in China's property insurance sector.

• Insurance revenue rose 5.1% to RMB235,841 million, with net profit for the period at RMB18,491 million, down 8.7% year-over-year.

• Combined ratio at 96.2%, outperforming industry benchmarks, with underwriting profit of RMB8,999 million, a 5.0% decrease year-over-year.

• Total assets reached RMB 1,649.9bn, up 6.0% from end-2023; net assets attributable to equity holders at RMB 254.6bn, up 4.7%.

Financial highlights

• EPS increased 13.7% year-over-year to RMB 0.53; basic earnings per share for P&C was RMB0.831.

• Total investment yield annualized at 4.1%, stable year-over-year; P&C total investment income was RMB13,971 million, unannualized yield 2.2%.

• Net cash flows from operating activities increased 20% to RMB21,246 million.

• Embedded value of Life and Health segments up 32.8% and 28.4% respectively.

• Interim cash dividend of RMB 0.63 per 10 shares proposed; P&C segment proposes RMB 0.208 per share, totaling approximately RMB4,626 million.

Outlook and guidance

• Focus on deepening supply-side reform, strengthening insurance in new fields, and leading national strategies.

• Plans to focus on technology, green, inclusive, elderly care, and digital finance to drive growth.

• Emphasis on high-quality development, cost reduction, efficiency, and risk management.

• Will enhance risk reduction services, digital transformation, and cost efficiency.

• Aims to optimize asset structure, maintain credit risk standards, and pursue high-quality development.