Chinese property and casualty (P&C) re/insurers generated an underwriting loss of 7.608 billion yuan (USD 1.18 billion) over the first 11 months of 2020, according to reports from regional publication Securities Daily.
This represents a decrease of 10.889 billion yuan from the 3.291 billion yuan (USD 510 million) that the sector reported over the same period in 2019.
Overall, China’s P&C re/insurance industry still achieved a total profit of 5.012 billion yuan (USD 780 million), which was a decrease of 54.069 billion yuan from the same period in 2019.
This means that the profits of P&C companies over 2020 were almost totally held up by their investment income.
Securities Daily also reported that among the 11 main types of P&C business, only three types proved to be profitable last year with a combined underwriting profit of 12.747 billion yuan (USD 1.98 billion), while eight were loss-making with a combined loss of 15.384 billion yuan (USD 2.38 billion).
Among these, credit insurance generated the worst results, with losses over the first 11 months exceeding 10 billion yuan for this line alone.