Monday, November 30, 2020
 
Columnist
Martin Hennecke
 
PICC GROUP
HKEx Stock Code : 01339 
 
Corporate Profile
The Group mainly provides integrated financial products and services and is engaged in property and casualty (¡§P&C¡¨) insurance, life and health insurance, asset management and other businesses.

Business Review - For the year ended December 31, 2012

The Group is principally engaged in three major business lines, namely property and casualty (¡§P&C¡¨) insurance, life and health insurance and asset management, respectively, which are divided into four major operating segments for reporting purposes: our P&C insurance business constitutes our P&C insurance segment and includes PICC Property and Casualty Company Limited (¡§PICC P&C¡¨) and The People's Insurance Company of China (Hong Kong), Limited (¡§PICC Hong Kong¡¨), in which we hold 68.98% and 75.0% equity interests, respectively. Our life and health insurance business constitutes two separate segments, namely our life insurance segment and our health insurance segment, among which our life insurance segment includes PICC Life Insurance Company Limited (¡§PICC Life¡¨), in which we hold an 80.0% equity interest directly and indirectly, and our health insurance segment includes PICC Health Insurance Company Limited (¡§PICC Health¡¨), in which we hold a 91.67% equity interest directly and indirectly. The asset management business constitutes our asset management segment and primarily includes PICC Asset Management Company Limited (¡§PICC AMC¡¨) and PICC Investment Holding Co., Ltd. (¡§PICC Investment Holding¡¨), which are 81.0% and 100.0% owned by us, respectively.

Business Outlook - For the year ended December 31, 2012

(1) Market Environment

In 2012, the insurance industry in China adhered to the principle of scientific development focusing on the acceleration in the transformation of its development, and the insurance sector demonstrated steady development. According to the statistics released by CIRC, the original premiums income in China for 2012 amounted to RMB1.55 trillion, representing an increase of 8.0% as compared to the previous year, in which, the original premiums income of the P&C insurance companies and life and health insurance companies recorded an increase of 15.7% and 4.2%, respectively, as compared to the previous year, and total insurance assets exceeded RMB7.35 trillion. China's insurance market is still one of the fastest growing insurance markets in the world.

In respect of the current market, the internal and external environment of the insurance industry in China are becoming more complex with increasing uncertainties that affect its development. The development of the insurance industry, especially the life insurance sector, has a more critical situation. However, the rapid growth in the income of urban and rural residents has accelerated and promoted the transformation and upgrading of consumption patterns, while adjustments on the marketing channels and product structure continues, providing development opportunities for the continuous and steady growth of the insurance industry.

In respect of the direction of regulatory policies, the regulatory environment of the insurance industry has been improved and the insurance investment channel has further expanded. Since the second half of 2012, CIRC has rolled out a series of insurance funds investment management policies and has further broadened the utilization of insurance funds, allowing insurance companies to have more flexibility in matching their assets and liabilities, which helps improve the investment returns of deployed insurance funds within the insurance industry.

In general, as China will still be at a stage of economic development with key strategic opportunities in the foreseeable future, the fundamentals of sustaining China's economic and social development have remained stable. Given that there is still a relative large gap in insurance density and insurance depth between China and the world's average standard, and the living standards and awareness of risk protection are rising, which provide a favorable external environment for the development of the insurance industry in China, China's insurance industry is at its golden age of development and shall continue to maintain stable growth.

(2) Business plans

The year 2013 is the first full year of operation of the Company after listing. The Company will continue to further strengthen its foundation, optimize the structure, innovate its system and enhance product quality during its business development and continuously drive the steady growth of its overall value. The Company will not only focus on seizing opportunities and striving to achieve a steady expansion of its businesses, but will also continue to enhance its operation quality and the creation of value. In terms of industry benchmarking development, along with maintaining stable business growth, the Company will ride on the trend of restructuring of the industry, proactively adjust and optimize its structure and continue to strengthen its ability to achieve sustainable growth.

Amid various challenges and changes, the Company will, according to the actual conditions of its subsidiaries, continue to strive for cost saving, further control various expenses and fully execute the budget dynamic management. In 2013, PICC P&C will pursue innovative products and services in overall planning, enhance its risk selection and risk pricing power, continue to optimize the business structure and consolidate its market position. PICC Life will maintain its competitive advantage in the bancassurance channel, put great efforts to develop non-bancassurance channels and promote coordinated development in protection insurance business and financial management insurance business, single premium product business and regular premium business according to consumer demand to increase the embedded value of the business. PICC Health will enhance its quality business expansion capability to boost the profitability of the government-entrusted business, develop profitable products, improve the control of medical care risks and formulate a stable profit model. With its diversified investment platform, the assets management business can develop projects in the equity, real estates and elderly-care business segments and vigorously expand third party business and innovative business in order to increase its investment income. Each of the business segments of the Group will continue to carry on synergistic operations and enhance its overall value.

Source: PICC Group (01339) Annual Results Announcement
Chairman WU Yan Issued Capital (shares) 8,726M
Par Value RMB 1 Market Capitalisation (HKD) 30,455M
 
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