China Re, the leading reinsurance company in China, has announced a noteworthy achievement of a net profit amounting to RMB 2.067 million in the first half of 2023.
This substantial increase stands in stark contrast to the RMB 365,972 reported during the same period last year.
During the first half of the year, China Re demonstrated robust growth in its gross written premiums, which reached RMB 102.617 million, reflecting a notable year-on-year expansion of 16.6%. The company’s total operating income also exhibited positive momentum, rising to RMB 54.501 million. This upward trajectory was fueled by gains from currency exchange and improved performance in insurance revenue.
China Re’s total insurance revenue for the first half of 2023 amounted to RMB 48.466 million, showcasing an impressive year-on-year growth of 16.4%.
Within the company’s diversified portfolio, the property and casualty (P&C) reinsurance segment played a pivotal role, contributing RMB 21.830 million to the overall income for the period. Moreover, primary P&C insurance made a significant contribution, totaling RMB 23.411 million. These figures signify substantial improvements compared to the results achieved in the previous year.
China Re also reported positive strides in its life and health reinsurance business, which contributed RMB 9.815 million to the company’s total income for the first half of the year. This performance showcases an evident advancement over the figures from the preceding year.
Despite the impressive results, China Re’s core solvency adequacy ratio in the first half of the year was reported at 155%, slightly lower than the previous year’s ratio of 157%. In the realm of property and casualty reinsurance, the combined ratio for the first half of the year stood at 99.65%, highlighting the company’s adeptness in managing its underwriting activities.
The substantial increase in net profit and the impressive growth across key segments underscore China Re’s ability to navigate the dynamic landscape of the insurance industry and capitalize on emerging opportunities.
Expanding on the P&C reinsurance result, China Re issued a statement saying: “In the first half of 2023, we concentrated on solidifying our leading position in the domestic reinsurance market, while also aiding in the creation of platforms for domestic commercial insurance business and national policy-oriented business.
“We reinforced the innovation-driven model and the application of technology, expediting the execution of strategic initiatives.
“Our focus extended to enhancing our customer service system, bolstering the capabilities of our underwriting team, and advancing our technical proficiencies.
“We experienced rapid growth in emerging business sectors, notably short-term health insurance, construction inherent defects insurance (IDI), construction surety bond insurance, Chinese interest abroad projects insurance, cyber securities insurance, and safety production liability insurance. This progression led to a continual refinement of our business structure.”
