CPIC Jan-May Property Insurance Premium Up 18.6%

The premium revenue China Pacific Insurance (Group) Co., Ltd. (CPIC, SEHK: 2601601 and SHSE: 601601) captured in the first five months of this year reached CNY 73.2 billion, according to data the dual-listed insurer released on June 15.

Of the total, CNY 46.4 billion was from the life insurance division and CNY 26.8 billion was from the property insurance division, representing a yearly rise of 11.5 percent and 18.59 percent, each. From January to April, the comprehensive cost rate of China Pacific Property Insurance Co., Ltd., the property insurance unit of CPIC, was 4.7 percentage points lower from the nation's average, with that of vehicle insurance 2.1 percent points lower than the average. The premium revenue it reaped from liability insurance as at May 31 surged up by 63.4 percent and contributed to 62 percent of its full-year goal. The figure it achieved from products sold via telephone or network as at April 26 exceeded the total it seized last year, with client population hitting 278,000 in total. The contractual premium it got through this way last month went up by 502.7 percent from a year ago. And as at May 31, the premium revenue it reaped via cross-sales rose 98 percent year on year and accounted for 50 percent of the full-year goal.

The premium revenue Ping An Property & Casualty Insurance Company of China Ltd., the property units of Ping An Insurance (Group) Company of China, Ltd. (SHSE: 601318 and SEHK: 2318), and PICC Property and Casualty Co. Ltd. (SEHK: 2328), the property insurance unit of The People's Insurance Company (Group) of China Ltd. (PICC), each gained during the five months increased by 36.2 percent and 10.9 percent year on year.

"The premium revenue growth of the nation's property insurers in the first half of this year will be lower than a year ago but still maintain at a relatively high level," said China International Capital Corp. (CICC). "The figure for the whole year is expected to reach about 20 percent on average, with that for January, February, November and December to be relatively low while that for each months during March to October to be relatively high. The nation's property insurance sector began gearing up from 2009 and the strong momentum is expected to last for at least four years. And during the period, comprehensive cost rate of the nation's property insurers will continue falling."