PICC Property and Casualty Company (2328) H2 2023 earnings summary

Executive summary

• Insurance revenue rose 7.5% YoY to RMB503.90bn; original premiums income increased 6.9% to RMB661.74bn.

• Net profit attributable to equity holders was RMB22.77bn, down 10.2% YoY under CAS; EPS was RMB0.51, also down 10.2%.

• Net assets attributable to equity holders grew 8.8% to RMB242.36bn; total investment yield fell 1.3ppts to 3.3%.

Financial highlights

• Total profit declined 19.3% YoY to RMB34.43bn under CAS; insurance revenue increased from RMB468.80bn to RMB503.90bn.

• Operating cash flow was RMB70.5bn; claims paid totaled RMB409.2bn.

• Total assets rose 9.9% to RMB1,557.16bn; liabilities increased 10.0% to RMB1,225.49bn, and book value per share rose 8.8% to RMB5.50.

Outlook and guidance

• 2024 priorities: stabilize growth, optimize structure, promote reform and prevent risks.

• Targets include steady premium growth, stable P&C combined ratio, steady investment income and net profit growth better than the average of key peers.

• NBV growth is targeted to maintain reasonable growth and outperform the average of listed insurers.