China Reinsurance (Group) (1508) Q2 2024 earnings summary

Executive summary

• Consolidated insurance revenue reached RMB 51.78 billion in H1 2024, up 6.8% year-over-year, with net profit attributable to equity holders surging 184.6% to RMB 5.727 billion and annualized ROE at 11.85%, up 7.39 percentage points.

• Total assets grew to RMB 474.465 billion (+3.2%), and total equity to RMB 107.493 billion (+5.2%).

• Underwriting profit hit a record high, and investment income surged 172.6% to RMB 9.647 billion, with annualized total investment yield up 1.11 percentage points to 4.66%.

• Risk management remained robust, with no significant risk events and strong solvency and international ratings (A by S&P, A (Excellent) by A.M. Best).

• Overseas business contributed 18.4% of gross written premiums, with Chaucer's premiums and profit doubling since acquisition.

Financial highlights

• Gross written premiums totaled RMB 100.412 billion, with consolidated premiums down 2.1% year-over-year.

• Total investment assets increased 4.5% to RMB 361.105 billion as of June 30, 2024.

• Earnings per share rose 184.6% to RMB 0.13.

• Domestic P&C and overseas P&C underwriting ratios were 99.49% and 89.09%, respectively.

• L&H reinsurance protection business ratio was 96.6%, down 0.75 percentage points.

Outlook and guidance

• Management expects more challenges in H2 2024 due to extreme weather, market volatility, and evolving macroeconomic conditions.

• Focus remains on stable, high-quality growth, optimizing business structure, prudent investment, and deepening reform and innovation.

• Commitment to achieving annual business objectives and supporting national strategies.