The People's Insurance Company (Group) of China (1339) Q2 2024 earnings summary

Executive summary

• Net profit attributable to equity holders rose 13.7% to RMB 23.40bn, with total net profit at RMB 31.49bn, and insurance revenue increased 6.0% year-over-year to RMB 261.63bn.

• Interim cash dividend of RMB 0.63 per 10 shares proposed, totaling RMB 2,786 million.

• Comprehensive solvency margin ratio reached 267%, with core solvency margin ratio at 210%.

• Group advanced digitalization, risk management, and ESG initiatives, and ranked 158th in Fortune Global 500.

• Net assets as of June 2024 were RMB 348,022 million, up 4.5% from year-end 2023.

Financial highlights

• Total assets reached RMB 1,649.9bn, up 6.0% from year-end 2023.

• Net profit attributable to equity holders increased 13.7% to RMB 23.40bn; EPS rose to RMB 0.53; weighted average ROE improved to 9.3%.

• Net cash flows from operating activities increased 16.9% to RMB 70.04bn.

• Total investment yield annualized at 4.1%.

• Embedded value of PICC Life and Health increased 32.8% and 28.4% respectively.

Outlook and guidance

• Focus on high-quality development, deepening reforms, and strengthening risk management in H2 2024.

• Plans to enhance product innovation, digital transformation, and coordinated development.

• Emphasis on expanding insurance in new sectors and asset-liability management.

• Promote innovation-driven development and health/elderly care ecosystem expansion.

• Maintain strong risk management and early warning mechanisms.