CPIC earns gross written premium of US$29 billion in H1

China Pacific Insurance (Group) Co Ltd saw its a gross written premiums amount to 208 billion yuan (US$29 billion) in the first half, up 7.9 percent year on year and exceeding the 200-billion-yuan mark for the first time.

And it earned a better-than-expected net profit of 16.1 billion yuan, up 96.1 percent compared with a year ago due to favorable tax policies and better investment results, the Shanghai insurance giant said in its interim report.

Across the business lines, CPIC Life delivered 14.9 billion yuan in half-year new business value, down 8.4 percent compared with a year ago. The subsidiary reported renewal business growth of 9.9 percent, driving a gross written premium growth of 5.6 percent for the first half of 2019, reaching 138.4 billion yuan.

By focusing on sustainable value growth and the empowerment of the agency channel, CPIC said its life business segment recovered growth in the second quarter and became more balanced.

The group’s property and casualty insurance intensified control of expenses and recorded a combined ratio of 98.6 percent, the same as that for the first half of 2018.

In particular, its auto insurance enhanced renewal management and achieved a shift of growth drivers, with improved capabilities in direct acquisition of customers.

Meanwhile, CPIC saw its emerging business lines such as agricultural, liability and guarantee insurance maintain strong momentum of growth from January to June.

The company is now China’s second insurer with business license for agricultural insurance in all administrative regions of the country. In the first half, the agricultural business reported primary insurance premiums of 4.3 billion yuan, with steady increase in market share.

As of the end of the reporting period, CPIC boasted a total of 133.52 million customers, an increase of 7.10 million from the end of 2018. And it has focused on new technology application to boost digital empowerment and deliver better customer experience.

The underwriter served over 70 million customers online during the first six months and enhanced capability in online claims management for auto insurance. Customers can receive the payment in a minimum of 15 minutes after uploading photos or video streaming, the report said.

Measured by primary insurance premiums, CPIC’s life and property and casualty subsidiaries top China’s third-largest insurers for relevant sector, respectively.

In the first half, China’s insurance market realized a premium income of 2.55 trillion yuan, up 14.2 percent year on year. Of this, premium from life/health insurance companies amounted to 1.88 trillion, a growth of 15.2 percent and that from property and casualty insurance companies 670.6 billion, up 11.3 percent.