China Reinsurance Group (China Re), the country’s largest reinsurer, has released a preliminary estimate of its results for the first half of 2021, which states that net profit will be up by between 55% and 65%.
The company’s profits dipped by 24% to roughly RMB 2.467 billion (USD 380.8 million) in H1 of 2020, which means it could be looking at profits of up to RMB 4.071 billion (USD 628.3 million) in H1 of this year.
China Re mainly attributed the improved results to year-on-year improvement in underwriting profits of international business following the optimization of its international business structure and an increase in premium rate.
But it also cited the optimization of asset allocation structures, which allowed it to seize opportunities arising from fluctuations in equity markets, resulting in a year-on-year increase of investment income.
China Re estimates its premium income for the first six months of this year at approximately RMB 23.332 billion (USD 3.602 billion).
However, the reinsurer stipulated that its estimates have not yet been audited or reviewed, and remain subject to change.
The figures are expected to be either updated or confirmed in China Re’s upcoming interim results report, along with further details on the company’s performance so far this year.