Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國太平洋保險(集團)股份有限公司
CHINA PACIFIC INSURANCE (GROUP) CO., LTD.
(A joint stock company incorporated in the People's Republic of China with limited liability)
(Stock Code: 02601)
Overseas Regulatory Announcement
This overseas regulatory announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The announcement is attached hereof for information purpose only.
By Order of the Board
China Pacific Insurance (Group) Co., Ltd.
KONG Qingwei
Chairman
Hong Kong, 24 August 2020
As at the date of this announcement, the Executive Directors of the Company are Mr. KONG Qingwei and Mr. FU Fan; the Non-executive Directors of the Company are Ms. LIANG Hong, Ms. LU Qiaoling, Mr. John Robert DACEY, Mr. HUANG Dinan, Mr. WANG Tayu, Mr. WU Junhao, Mr. ZHOU Donghui and Mr. CHEN Ran; and the Independent Non-executive Directors of the Company are Ms. LAM Tyng Yih, Elizabeth, Ms. LIU Xiaodan, Mr. WOO Ka Biu, Jackson, Mr. CHEN Jizhong, and Mr. JIANG Xuping.
- Note: The appointment qualifications of Ms. LIANG Hong, Ms. LU Qiaoling, Mr. John Robert DACEY, Mr. ZHOU Donghui, Mr. CHEN Ran, Ms. LIU Xiaodan and Mr. WOO Ka Biu, Jackson are subject to approval by China Banking and Insurance Regulatory Commission.
Summary of Quarterly Solvency Report
Anxin Agricultural Insurance Company Limited
2nd Quarter of 2020
Contents | |
I. BASIC INFORMATION ............................................................................. | 1 |
II. KEY INDICATORS .................................................................................... | 2 |
III. ACTUAL CAPITAL .................................................................................. | 2 |
IV. REQUIRED CAPITAL .............................................................................. | 2 |
V. INTEGRATED RISK RATING..................................................................... | 3 |
VI. RISK MANAGEMENT STATUS ............................................................... | 3 |
VII. LIQUIDITY RISK.................................................................................... | 4 |
VIII. REGULATORY MEASURES TAKEN AGAINST THE COMPANY .............. | 5 |
I. Basic information
(I) Registered address
Agricultural Insurance Building, 3651 Gonghexin Road, Shanghai, the PRC.
(II) Legal representative
SONG Jianguo
(III) Business scope and territories
1.Business scope
Agricultural insurance; property indemnity insurance; liability insurance including mandatory liability insurance; credit and guarantee insurance; short-term health and accident insurance; other types of property insurance relating rural areas and farmers; reinsurance of the above said insurance; insurance agency business (subject to approval by regulators as per relevant laws and regulations);
2. Business territories
Shanghai, Jiangsu Province, Zhejiang Province.
(IV) Ownership structure and shareholders
1.Ownership structure (10k shares or 10k RMB)
Equity category | Shares or contributed amounts | Percentage (%) |
Domestic shares held by legal entities | 70,000 | 100 |
Domestic shares held by natural persons | - | |
Foreign shares | - | |
Others | - | |
Total | 70,000 | 100 |
2.Top 10 shareholders (10k shares or 10k RMB)
Shares held or amounts | Percentage of | |
Names of shareholders | contributed at the end | |
shareholding (%) | ||
of the reporting period | ||
China Pacific Property Insurance Co., Ltd. | 36,490.08 | 52.13% |
Shanghai Agricultural Development Co. Ltd. | 7,718.03 | 11.03% |
Shanghai Minhang Asset Investment Co., Ltd. | 5,365.19 | 7.67% |
Shanghai Nongfa Asset Management Center | 4,201.72 | 6.00% |
Shanghai Baoshan Fiscal Investment Company | 3,150.84 | 4.50% |
Shanghai Jiading Guangwo Asset Management Co., Ltd. | 2,504.59 | 3.58% |
Shanghai Fengxian District State Asset Operation Co., Ltd. | 2,368.95 | 3.38% |
Shanghai Songjiang State Asset Investment Management Co., Ltd. | 2,025.88 | 2.89% |
Shanghai Huinong Investment Management Co., Ltd. | 1,817.99 | 2.60% |
Shanghai Qingpu Asset Management Co., Ltd. | 1,719.37 | 2.46% |
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(V) Controlling shareholder or de facto controller
The Company has no de factor controller. China Pacific Property Insurance Co., Ltd. is
the majority shareholder, holding 52.13% of the shares of the Company.
(VI) Subsidiaries, joint or associate ventures
None during the reporting period
(VII) Contact person information
1.Contact person:HU Xiaolu
2.Tel. number:+86-21-66988251
3. Email:huxl@aaic.com.cn
II. Main indicators
Item
As at the end of this quarter/during this quarter
As at the end of last quarter/during last quarter
Core solvency margin ratio | 274% | 288% |
Core solvency margin surplus (10K RMB) | 109,586 | 111,560 |
Comprehensive solvency margin ratio | 274% | 288% |
Comprehensive solvency margin surplus (10K RMB) | 109,586 | 111,560 |
Latest IRR result | - | A |
Premium income (10K RMB) | 73,241 | 16,949 |
Net profit (10K RMB) | 202 | 2,422 |
Net assets (10K RMB) | 152,408 | 152,451 |
III. Actual capital
As at the end of
Item
this quarter
As at the end of last quarter
Admitted assets (10K RMB) | 417,754 | 375,810 | |
Admitted liabilities (10K RMB) | 245,286 | 205,014 | |
Actual capital (10K) | 172,468 | 170,797 | |
Tier 1 core capital (10K RMB) | 172,468 | 170,797 | |
Tier 2 core capital (10K RMB) | 0 | 0 | |
Tier 1 supplement capital | (10K RMB) | 0 | 0 |
Tier 2 supplement capital | (10K RMB) | 0 | 0 |
IV. Required capital
As at the end of
Item
this quarter
As at the end of last quarter
Required capital (10K RMB) | 62,883 | 59,236 | |
Required capital for quantitative risks (10K RMB) | 61,859 | 58,272 | |
1)Required capital for insurance risk (10K RMB) | 50,233 | 44,760 | |
2)Required capital for market risk | (10K RMB) | 7,410 | 6,423 |
3)Required capital for credit risk | (10K RMB) | 21,485 | 24,791 |
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4)Diversification effect for quantitative risks(10K RMB) | 17,268 | 17,703 | |
5)Loss absorption for special-type insurance contract loss (10K RMB) | - | - | |
Required capital for control risk | (10K RMB) | 1,024 | 964 |
Supplement capital (10K RMB) | - | - | |
1)Counter-cyclical supplement capital (10K RMB) | - | - | |
2)Supplement capital of D-SIIs | (10K RMB) | - | - |
3)Supplement capital of G-SIIs | (10K RMB) | - | - |
4)Other supplement capital (10K RMB) | - | - | |
V. Integrated risk rating (IRR)
The Company was rated A at the IRR by CBIRC for both Q1 of 2020 and Q4 of 2019.
VI. Risk management status
- The latest CBIRC Solvency Aligned Risk Management Requirements and Assessment (SARMRA) of the Company
The Company scored 76.69 points in the last (2017) SARMRA assessment conducted by the CBIRC. To be specific, it received 17.81 points for risk management infrastructure and environment, 7.06 points for risk management objectives and tools,
- points for insurance risk management, 7.57 points for market risk management,
- points for credit risk management, 7.38 points for operational risk management,
- points for strategic risk management, 7.15 points for reputation risk management, and 7.81 points for liquidity risk management.
- Measures taken to improve solvency risk management and the latest results in the reporting period.
The Company continued to take measures to step up its risk management in this quarter.
First, it implemented Group requirements concerning integrated risk control. In line with the spirit of Group Working Meeting on Integrated Risk Control, the Company drafted implementation plan, pushed for risk control responsibilities to go downstream to branches, upgrade risk control systems, and address chronic issues and deficiencies. It enhanced coordination with the corresponding function of CPIC P/C and received a visit by the Risk Management Department of CPIC P/C for exchanges of information and views on latest regulatory developments and discussions of the work plan for the second half of the year.
Second, it upgraded the 2020 Risk Appetite Framework (RAF). Based on the evaluation of the current risk control systems and the implementation status of the RAF in capital,
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earnings, liquidity and risk management, it upgraded the 2020 RAF. In light of the requirements on RAF management systems of the parent company and its own realities, it amended the Risk Upper Limits for relevant indicators, which will be released in due course.
Third, as per PBOC requirements, the Company conducted the risk screening and self-assessment of Q1 2020, with reporting on changes in solvency and reasons, major risks and mitigation, special risks and mitigation, impact of domestic and overseas economic environment and economic policies on its business operation.
Fourth, completed the filing of IRR data for Q1 2020, Risk Upper Limits, and finished the evaluation of risk management in major categories, while closely monitoring its risk status and taking timely steps to mitigate potential risks.
VII. Liquidity risk
(I) Liquidity risk management indicators
1. Net cash flow
Item | During/as at the end of this quarter |
Net cash flow (10K RMB) | 2,455 |
2. Comprehensive current ratio
Item | Within 3 months | ||||
Comprehensive current ratio | 128% | ||||
3. Liquidity coverage ratio | |||||
Item | Stress scenario 1 | Stress scenario 2 | |||
Liquidity coverage ratio | 758% | 663% | |||
- Liquidity risk analysis and mitigation
- Cash flows
In this quarter, net cash flow of the Company was RMB24.5504 million. Net cash flow from business activities in this quarter increased by RMB335.7222 million from the previous quarter to RMB231.6457 million. Net cash flow from the Company's investment activities was -RMB52.6959 million, a decrease of RMB51.0739 million from the previous quarter. Financing activities generated -RMB154.3973 million in net
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cash flow, down by RMB290.2787 million from the previous quarter.
(2) Liquidity indicator analysis
The comprehensive current ratio within 3 months was 128%, staying largely flat compared with the previous quarter.
The liquidity coverage ratio is 758% and 663% under stress scenario 1 and 2 respectively in the next quarter. The Company's high-quality liquid assets are enough to meet short-term cash flow requirements arising from business volatility.
VIII. Regulatory measures taken against the Company
(I) Regulatory measures taken against the Company by CBIRC
The Company received no penalties from CBIRC during the reporting quarter.
(II) Corrective measures taken by the Company
Going forward, the Company will continue to pay close attention to risk issues high on the regulator's agenda and internal control, address the root causes of the issues, so as to improve its overall risk management capabilities.
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Disclaimer
China Pacific Insurance (Group) Co. Ltd. published this content on 23 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2020 11:13:26 UTC