CHINA TAIPING released its interim results: double-digit growth in net profit attributable to shareholders, and the transformation effect of dividend insurance is significant

On August 28, CHINA TAIPING disclosed its interim results for the six months ending June 30, 2025.

The data shows that CHINA TAIPING achieved a net profit attributable to shareholders of HKD 6.764 billion, a year-on-year increase of 12.2%. Notably, the transformation of Taiping Life's participating insurance has shown significant results, with participating insurance accounting for 87.1% of the first-year premium income in long-term insurance; the new business value reached RMB 6.181 billion, a year-on-year increase of 22.8% after restatement compared to the same period last year.

In terms of investment structure, CHINA TAIPING achieved a year-on-year increase in dividend income. The investment scale has steadily grown, and net investment income has steadily improved.

Profit Growth of 12.2%

The announcement shows that the profit attributable to shareholders (net profit attributable to the parent) of CHINA TAIPING continues to grow, with core business making steady progress. In the first half of the year, the profit attributable to shareholders was HKD 6.764 billion, a year-on-year increase of 12.2%, mainly due to the performance of the insurance service industry rising compared to the same period last year.

Specifically, the profit from life insurance business was HKD 8.278 billion, a year-on-year increase of 5.5%; the profit from domestic property insurance business was HKD 686 million, a year-on-year increase of 84.9%, mainly due to the performance of the insurance service industry rising compared to the same period last year; the profit from reinsurance business was HKD 872 million, a year-on-year increase of 74.8%, mainly due to the performance of the insurance service industry and net investment performance rising compared to the same period last year.

Total equity was HKD 136.4 billion, an increase of 11.5% compared to the end of last year, mainly due to the issuance of perpetual capital securities during the financial period. The equity attributable to ordinary shareholders was HKD 74.238 billion, an increase of 4.4% compared to the end of last year, mainly due to the comprehensive income attributable to shareholders during the financial period of HKD 4.932 billion.

Total assets were HKD 18.7 trillion, an increase of 8.1% compared to the end of last year, mainly due to the total financial investment increasing compared to the end of last year.

Significant Results in Participating Insurance Transformation

The insurance service income from CHINA TAIPING's life insurance business increased by 0.8% year-on-year, with domestic life insurance business insurance service income increasing by 0.9% year-on-year; the overall value transformation and quality improvement of the life insurance line drove the insurance service performance to increase by 7.6% year-on-year.

It is worth mentioning that the transformation of Taiping Life's participating insurance has shown significant results, with participating insurance accounting for 87.1% of the first-year premium income in long-term insurance; the new business value reached RMB 6.181 billion, a year-on-year increase of 22.8% after restatement, mainly due to the in-depth implementation of "reporting and operation integration" and growth in new single premiums; insurance service income and insurance service performance increased by 3.7% and 0.6% year-on-year, respectively; original premium income increased by 5.4% year-on-year, and new single premium income increased by 4.2% year-on-year; the four continuation rate indicators for individual insurance and bank insurance maintained industry leadership.

The performance of Taiping's pension insurance service increased by 82.5% year-on-year, mainly due to a significant improvement in the claims ratio of short-term insurance business; the smooth transformation of group employee welfare protection business was carried out, focusing on pension insurance business

Investment Income Improvement

In terms of investment structure, CHINA TAIPING achieved a year-on-year increase in dividend income. The investment scale has steadily grown, and net investment income has steadily improved.

As of the end of June 2025, the group's investment assets amounted to HKD 1.68 trillion, an increase of 7.8% compared to the end of last year; in the first half of the year, net investment income reached HKD 25.268 billion, a year-on-year increase of 3.1%, mainly due to the growth in dividend and fund distribution income.

As of the end of June 2025, fixed income assets accounted for 84.5% of the group, an increase of 1.7 percentage points compared to the end of last year, with appropriate borrowings for repurchase enhancing portfolio returns, while cash, cash equivalents, and others decreased by 1.0 percentage point.

FVOCI equity increased year-on-year, and dividend income improved year-on-year. As of the end of June 2025, the group's FVOCI stocks and unlisted equity amounted to HKD 52.531 billion, an increase of 2.2% compared to the end of last year. In the first half of 2025, the group's dividend and fund distribution income grew by 20.1%.

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