China Reinsurance Group (China Re), the country’s largest reinsurer, has published its first quarter of 2023 results, reporting an increased net profit of RMB 1,235 million and a combined ratio – at its own level – of 103.35%.
In the same period last year, the Group reported RMB 463 million in net profits.
According to the announcement, this significant growth was due to the year-on-year improvement in the underwriting profit for the company’s overseas P&C reinsurance business as it fully grabbed the opportunity of rising rates in overseas markets.
The second factor that contributed to this improvement according to China Re, was the year-on-year increase in the company’s investment income, which for Q1 2023 was RMB 0.73 million.
The Group’s insurance income for this first quarter was RMB 58,115 million, up from RMB 47,803 million. This increase was mainly due to the fast growth in the businesses of P&C reinsurance, life and health reinsurance and primary P&C insurance, China Re noted.
For China Re P&C, the company reported net profits of RMB 337 million, insurance income of RMB 13,300 million and a combined ratio of 99.41%.
China Re Life saw a net loss of RMB 107 million, insurance income RMB 25,502, and a combined ratio of 100.25%.
Finally, China Continent Insurance’s net profit for Q1 2023 was RMB 86 million, its insurance income RMB 15,133, and its combined ratio was 100.44%.
Also notable today is that China Re has raised new capital through a bond issuance, which the reinsurance company said will boost its solvency and support further growth of its business
According to the announcement, China Re P&C has successfully issued capital supplementary bonds with a total principal amount of RMB 4 billion in the National Interbank Bond Market.
These are ten-year fixed-rate bonds, with an annual coupon rate of 3.45% for the first five years. Additionally, China Re P&C has conditional redemption rights at the end of the fifth year.
In the event that China Re P&C does not exercise the redemption rights, the company noted, the annual coupon rate of the capital supplementary bonds will be 4.45% in the remaining five years.
