PICC continues transformation

The People's Insurance Company of China Group will further its strategic transformation project in the near future and aims to streamline its three subsidiaries, according to the company's top management on Monday.

"The group will focus on transformation to a high-quality development model," said Li Zhuyong, vice-president of the PICC group. "This will involve strategic moves on innovation, digitalization, integration and internationalization."

According to the company's report, PICC group has gained a net profit of 10.05 billion yuan ($1.47 billion) in the first half-year, a 14 percent year-on-year increase. PICC Property and Casualty Co Ltd or PICC P&C, a key subsidiary of PICC group, has seen a 9.6 percent year-on-year increase of investment profit in the same period due to investment in long-term bonds, according to the company's top management.

"The company has been focusing more on investment in long-term bonds," said Sa Chengde, Assistant President of PICC P&C. "In the future, the company will focus more on long-term investments and overseas investment."

High interest rate range and stable returns in equity investments in the first half of 2018 also contributed to the increase of investment profit, lifting the figure to 10.93 billion yuan, Sa said.

PICC P&C has gained 205.04 billion yuan of total premium income in the same period, a year-on-year increase of 14.1 percent, according to the company's statement.

The company's premium incomes from motor insurance and non-motor insurance have seen a year-on-year increase of 3.6 percent and 33.6 percent in the first half-year, reaching 122.43 billion and 82.61 billion yuan respectively, the company's report said.

"Currently, the ratio of the company's premium income between motor insurance and non-motor insurance is approximately six to four," Sa said. "In the future, the industry will see a balanced development among these two types of insurance."

Fan Hang contributed to this story