By MIAO Yiwei
In its interim report unveiled on August 28, China Pacific Insurance (CPIC), China's insurance powerhouse, revealed a 2.5 percent surge in operating income for the first half of 2023, amounting to 176 billion yuan (US$24 billion). OPAT attributable to the parent's shareholders reached 21.5 billion yuan during the same period.
Significantly, CPIC's pivotal business components, CPIC Life and CPIC P/C, exhibited steady growth. CPIC Life achieved written premiums of 170 billion yuan, marking a 2.5 percent increase, while its OPAT reached 16.7 billion yuan, a 2.4 percent rise. Notably, CPIC Life's NBV experienced a 31.5 percent upswing compared to the same 2022 period, totaling 7.36 billion yuan, accompanied by a 2.7 percentage point increase in NBV margin.
The improved productivity showcased by a decreased monthly average agent count and an elevated monthly average FYP per agent played a role in augmenting income. Additionally, the bancassurance channel contributed to a 7.7 percent rise in written premiums.
Within the CPIC P/C sector, primary premium income reached 194 billion yuan, reflecting a 14.3 percent year-on-year increase. Of this, automobile insurance accounted for 50.8 billion yuan, while non-automobile insurance constituted 52.9 billion yuan. Despite a 65.1 percent year-on-year growth in the NEV segment, the underwriting combined ratio remained above 100 percent due to the higher claim frequency associated with NEVs compared to traditional vehicles.
CPIC's President, FU Fan, highlighted significant macroeconomic shifts, including the expected Fed interest rate hike and evolving consumer habits, during the results announcement. Looking ahead, CPIC aims to diversify its life insurance products to align with consumer needs.
For automobile insurance, the company has introduced a tailored system for NEVs. Collaborative efforts with car brands are also underway to expedite progress in NEV insurance.
