CPIC Announces 2021 Sustainability Report


On March 27China Pacific Insurance (Group) Co., Ltd. (“CPIC” or the “Company“; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) released its 2021 Sustainability Report. This is the first sustainability report released by CPIC, based on its 13 consecutive years of social responsibility reports, demonstrating its determination and confidence in committing to sustainable development and building a high-quality development highland, and reflecting the development trend of CPIC focusing on long-term benefits and overall interests. Guided by the support for national strategies, the report presents four sustainable development forces, namely sustainable development traction, support, influence and synergy, which comprehensively summarizes the efforts and contributions made by CPIC in the practice of sustainable development.

The structure of this report focused on sustainable development. Based on the framework of “supporting national strategy” + “sustainable development capability” + “ESG performance”, the report comprehensively and systematically disclosed CPIC’s efforts and achievements in the areas of sustainable development strategy and management, endogenous development momentum, stakeholder management and compliance with international standards. Standards were compiled around sustainable development. The alignment with the UN Sustainable Development Goals (SDGs) were further strengthened. At the same time, it responded to the implementation of the UN PRI and the UN PSI. It highlighted the effectiveness of serving the “carbon peak and neutrality” goal. The report comprehensively disclosed the effectiveness of CPIC’s service to the” carbon peak and neutrality ” goal from four parts: green insurance, green investment, green operation and green public welfare, and disclosed the risk management, scientific and technological innovation and other measures taken by CPIC to deal with climate change according to the framework of the TCFD.

In 2021, standing at the new starting point of starting again in its infancy, CPIC adheres to people-oriented, long-term doctrine, the upward trend of finance, and takes sustainable development as the new driving force and direction of social responsibility.

Focus on the well-being of the people and make great efforts to the vast and subtle. The CPIC is concerned about the people’s yearning for a better life, implements the great health strategy, and solves the medical problems faced by the broad masses of the people. It has undertaken various government medical insurance cooperation projects, covering 145 million people, participated in 35 people-friendly insurance projects, covering 21 million people, and provided 7×24 hours of service by the imperial medical housekeeper with a full-time team of 400 people. The layout of pension industry is growing to meet the needs of the people. Ten “CPIC homes” have been established in 9 places including Chengdu, Dali, Shanghai and Hangzhou, and the national layout of the pension industry has been preliminarily completed. We will promote rural revitalization and consolidate and expand the achievements of poverty alleviation. Targeted poverty alleviation covers 7.62 million registered poor households, and won the honorary title of “national advanced collective for poverty alleviation”; “Poverty prevention and social security” has been extended to more than 1000 counties and districts, writing a new chapter in promoting rural revitalization and inclusiveness.

Guided by ecological civilization, man and nature develop in harmony. Building ecological civilization and promoting green, low-carbon and circular development is the original meaning of sustainable development. CPIC will build a green financial service system to protect the civilized development road of production development, rich life and well ecology. Green insurance, braves to be the vanguard. Serving the low-carbon circular economy, the new energy insurance nearly one trillion yuan; Zero-carbon and green and sustainable insurance will be promoted first to form industry models; Wildlife accident insurance has been implemented for a long time to promote biodiversity protection. Being a pioneer in green investment. The Company participated in green investments in energy, environmental protection, and water and pollution prevention in the form of debt investment, equity investment, asset backing and industrial funds. In addition, it issued the first ESG insurance capital management product and launched theme products of carbon neutrality. Boldly being the main force of green operation. By responding to climate change risks with product innovation and technological innovation, buildings such as Pacific Care Home followed green standards, 1,500 mu of the Sanjiangyuan, or origin of the Yangtze River, the Yellow River and Lancang River guarded the Chinese Water Tower, and the energy use efficiency of data centers continued to improve.

Following higher standards to enhance sustainable development momentum. Facing the challenges of the epidemic and uncertainty, CPIC has formulated a sustainable development strategy guided by advanced sustainable development concepts. Furthermore, the Company strengthened top-level design and prepared ESG strategy and action plan. The Board of Directors established the “Strategic and Investment Decision-Making & ESG Committee” to ensure a professional course of sustainable development and signed the International Principles for Sustainable Development. The Company became the second company in mainland China to sign the UN PSI and the fourth asset owner to sign the UN PRI. And it also signed the “Belt and Road” Green Investment Principles, setting a higher standard for sustainable development and conscientious compliance. Cultivating soft power for sustainable development. With digital transformation, big data platform, and intelligence, technology is a driving force for innovation and creativity. CPIC’s “Service Officer” has penetrated into all aspects of service, and the high quality experience is enabled by service around, lifelong, and exquisite service. CPIC’s services convey the philosophy of “Customer first”.


New Subsidiary, New Advantage


China Pacific Insurance (Group) Co., Ltd. (“CPIC” or the “Company“; Stock Code: 2601.HK, 601601.SH, CPIC.LSE) recently informed that China Banking and Insurance Regulatory Commission officially approved the application of China Pacific Insurance to establish CPIC Technology Co., Ltd. (“CPIC Technology”) on 21 January, 2022, marking that CPIC Technology became one of the first approved technology subsidiaries focusing on rendering information technology services to insurance groups after the promulgation of the Administrative Measures for the Supervision of Insurance Group Companies.

In the context of insurance industry digitalisation, technology has become a new battlefield of changes and competitions for insurance industry as technology is gradually interacting with the industry in all aspects. As a top insurance company, CPIC always regards technology as the core element to drive business development, and regards shaping the future-oriented technology advantage as the inevitable requirement to achieve high-quality development. In July 2020, the board of directors of CPIC resolved to push forward the establishment of CPIC Technology as a significant strategic decision on “Strengthen Technology”, a component of CPIC Transformation 2.0. During its subsequent trial running for more than one year, CPIC Technology developed a data lake for universal business-related data across CPIC for the first time as a part of its efforts to create data governance system, and it extended its presence to several regions by relocating Luojing Data Centre for “second-level response time for 100 million-level user base, and real-time computing for full data”, putting Greater Bay Area Science and Technology Innovation Centre into operation, and advancing the progress of Wuhan R&D Centre. It has successively entered into market-oriented technological cooperation projects with the Group and its subsidiaries, further improving the technology governance system of CPIC. The company has received aggregate 15 copyright patents from National Copyright Administration of China, and more than 20 domestic and foreign industry awards for its digital product matrix represented by Intelligent Platform for Compliance, Intelligent Contract Review, Family, and AI Open Platform, and for its self-developed “Cat” series automatic test platform, which has been selected as the top ten technological achievements in digital transformation of state-owned enterprises.

CPIC establishes CPIC Technology to respond to the new requirements of industry development, and open up a new track for the insurance industry. CPIC Technology will provide new momentum for high-quality development of CPIC, bringing about new advantages for CPIC.

Responding to the New Requirements of Industry Development. China’s insurance market is in a critical stage of development with shifting cycles and reshaping of growth engines. CPIC Technology will actively respond to the developing requirements set out in Guiding Opinions on the Digital Transformation of the Banking and Insurance Industry and China’s Insurance Technology 14th Five-Year Development Plan. It will focus on top-level design, strengthen overall planning, give full play to the role of new strategic entity, so as to help CPIC maintain its strategic focus on protection-oriented products, support the construction of the financial technology industry, improve the quality and efficiency in serving the real economy, and strengthen the ability to serve the society and people’s wellbeing.

Opening New Development Paths in Insurance Technology. Nowadays, with the accelerated evolution of a new wave of technological revolution and industrial transformation, CPIC Technology will implement cutting-edge technology research and technological engineering projects, overcome the challenges and grasp the opportunities in the new era of technological development, and focus on independent research and development, data services, platform collaboration, innovation transformation, and other long-term develop of technology capability. Also, it will promote innovative breakthroughs in key technology fields such as blockchain platforms, trusted computing platforms, big data risk control platforms, AI service capabilities, and IoT solutions, and continue to put efforts into “big health”, “big data”, “big regions” and “metaverse” and other key areas, to promote the core transformation from “digital” to “digital intelligence”, and boost the business transformation and upgrading and conversion.

Becoming a New Driver for High-quality Development. In the critical year of further promoting the “14th Five-Year Plan” and CPIC’s new 30-year development, as the main force of CPIC’s technology empowerment, CPIC Technology will promote CPIC to establish technology capabilities that match CPIC’s industry status, and enhance the display of technological empowerment, to empower the management and CPIC to give full play to the advantages of the system and mechanism and the role of the platform window, in order to promote the deep integration of business and technology, cultivate new momentum for high-quality business development with technology, and make insurance technology a powerful driver of high-quality development of our group on its new journey.

In the future, CPIC Technology’s mission will be “achieving growth in insurance business using technology and creating value with expertise”, with the vision of “becoming a leader of the new era of insurance technology”, and adhere to “be open-minded to innovation, be customer-oriented, efficiently promoting new strategies, creating synergy and symbiosis, and emphasis on steady growth and systematisation”, it will serve the main business, empower the main business, and play a greater role in promoting the development of China’s insurance industry.


China Pacific Insurance Announces 2021 Interim Results


China Pacific Insurance (Group) Co., Ltd. (the “CPIC” or the “Group“; Stock code: 601601.SH, 2601.HK, CPIC.LSE) is pleased to announce interim results of the Group for the six months ended 30 June 2021 (the “Reporting Period“).

CPIC reported solid business performance in the first half of 2021. During the reporting period, Group operating income amounted to RMB252.512 billion, a growth of 7.2% year on year. Group net operating profits (OPAT) was RMB18.279 billion, a growth of 4.9% year on year. Group embedded value (EV) amounted to RMB474.431 billion, an increase of 3.3% from the end of 2020. Group assets under management (AuM) amounted to RMB2,565.483 billion, an increase of 5.3% from the end of 2020. Group number of customers amounted to nearly 160 million, and what is worth noting is the Group acquired over 10 million new customers for the first time in half a year.

In the first half of the year, CPIC’s Life insurance new business sales grew rapidly, Property and casualty maintained underwriting profitability, with sustained fast growth of non-auto business. Gross written premiums (GWPs) of CPIC Life amounted to RMB141.449 billion, up by 2.1%. Of this, first year premiums (FYPs) from the agency channel of the individual business realised a growth of 18.5%. OPAT of life insurance reached RMB14.293 billion, up by 6.7%; the residual margin of life insurance amounted to RMB357.713 billion, a growth of 1.9% from the end of 2020. GWPs of CPIC Property and casualty (Consolidated data of CPIC P/C, CPIC Anxin Agricultural and CPIC HK) amounted to RMB82.761 billion, an increase of 6.4%. Of this, non-auto business grew by 28.3% and accounted for 46.1% of total property and casualty insurance GWPs, up by 7.9pt. Automobile insurance enhanced customer retention to push for a shift of growth drivers. Emerging business lines such as health, agricultural and liability insurance maintained rapid development.

In the first half of the year, CPIC persisted in asset allocation through economic cycles and based on profiles of liabilities, with solid investment results. Group AuM amounted to RMB2,565.483 billion, an increase of 5.3% from the end of 2020. Of this, third-party AuM amounted to RMB813.367 billion, an increase of 3.2%.

Specifically, CPIC Property and casualty insurance pro-actively adapted to the comprehensive reform of automobile insurance, pushed for integration of automobile and non-auto insurance business and delivered rapid top-line growth while maintaining underwriting profitability. CPIC Life insurance recorded FYPs growth of high double digits on the back of well-planned and executed business promotion activity and continued innovation in “products + services” focusing on customer demands, with sustained increase in residual margin. As for investment, CPIC made wise decisions, based on a Group-centralised investment research platform, and realised stable investment results amid a volatile market. The Group also established a private equity firm and obtained the qualification for fund management, enhancing deployment in asset management.

Value and long term have been ingrained into our culture and business philosophy. When faced with hard choices, the Group would choose to do the “practical”, “difficult” and “right” thing.

The implementation of the health business strategy got underway. Guangci-CPIC On-line Hospital went operational and launched its first product “CPIC Family Doctor”, a proprietary online management platform for doctors so that each of our customers can access high-quality family doctor services. Our health insurance subsidiary completed shareholding restructuring, and is currently working on “new channels, new products, new technology” to drive transformation. As for industrial investment in health care, on the back of market-based platforms, CPIC established a dedicated equity investment fund focusing on innovative drug, medical equipment and appliances and medical services, with a number of projects underway.

The Group initiated and moved ahead with the big data strategy. A unified data management policy was formulated, with the establishment of a multi-tiered organisational structure from the Group to subsidiaries. The Group proceeded with platform building, data governance and data applications based on an overall blueprint. The mechanism of technology marketisation went operational. CPIC Fintech, which is still in the preparatory stage, signed shared service agreements with other subsidiaries so that it could be more pro-active and efficient in serving their needs. The building of R&D centres also delivered initial success. The centres in ShanghaiChengdu and Wuhan combine specialisation with collaboration. Going forward, CPIC will establish an innovation R&D centre in the Greater Bay Area, and its construction plan is being reviewed for feasibility. The Group also set up the Data and Intelligence Institute, stepped up recruitment of top-notch talent in the industry, with 7 leading experts now on board. CPIC put in place task forces in 6 areas such as big data, AI, cyber-security, Internet operation, cloud computing and block chain, responsible for development of core technologies with incubation mechanisms initially in shape.

The Group continued to deepen “CPIC Service”. The institution of “Service Officer” was put in place, which covers 5,800 branch offices and stretches across 4 levels of hierarchy, from the Group to key sub-branches. Over 700 senior managers were appointed as Service Officers, working at the front-line of customer service and shouldering the responsibility of “integrating CPIC Service into transformation initiatives”. “Blue Friends”, or CPIC employees in blue uniforms can be seen at the forefront of the fight against the pandemic, on the venue of the China International Import Expo and the Flower Expo, and the site of relief and rescue of heavy rains in Henan Province. “Responsible, intelligent and caring” have become the label of “CPIC Service”.

The Group made progress with sustainable development. Under the leadership of the board, the Group completed the top-level ESG design, and have started to incorporate ESG sustainable development philosophy into daily business operation. The Group vigorously supported motor vehicles running on renewal energy via automobile insurance to encourage green travelling, and provided insurance cover for 424.6 thousand new energy vehicles; the Group tailor made insurance solutions for environmental treatment, green ship-building, advanced manufacturing and new infrastructure, and launched a number of products to boost sustainable development of the ecosystem; the Group conducted green investment in renewable energy, water conservation and environmental protection area by means of debt securities, equity investments and industry funds. The Group is in the process of formulating a Group-level sustainable development strategy covering liabilities, assets and our own operation, so as to attain a new level of sustainable development.