China Pacific Property Insurance (CPPIC) is anticipated to maintain underwriting profits with a combined ratio ranging from 96% to 99% over the next two years, despite potential challenges from non-motor sectors and natural disasters. According to S&P Global Ratings, CPPIC’s robust market presence and established brand will bolster its competitive edge.
China Pacific Insurance Group (CPIC) is seen as maintaining satisfactory capital and earnings, supported by an enhanced capital buffer under the revised model and the implementation of IFRS 17 accounting standards. CPPIC’s capital position is regarded as fair, with a projected deficiency at the 99.5% confidence level, although its capital buffer has strengthened due to improved recognition of diversification benefits.
The stable outlook suggests that CPPIC will continue as a key subsidiary of CPIC Group for the foreseeable future. CPIC Group’s capital and earnings are expected to remain satisfactory, buoyed by a strong competitive position in China. The group’s improved capital buffer is projected to enable it to navigate market challenges and pursue business growth, even amidst low interest rates and market volatility. However, CPIC’s net profit fell by 27% year-on-year in 2023, influenced by market fluctuations and the adoption of new accounting standards.
