On October 28, during the 2026 third-quarter results briefing, management of China Pacific Insurance (Group) Co., Ltd. (ASX: 601601) addressed the company's solvency position.
Taking the life insurance business as an example, management noted that the comprehensive solvency ratio stood at 209% in the first half of 2026 and edged down slightly to 207% by the third quarter. The core solvency adequacy ratio for the life insurance segment was 143% in the first half and rose to 144% in the third quarter, up one percentage point. As a result, CPIC (ASX: 02601) has maintained a relatively stable solvency level, which is deeply and closely tied to its overall asset risk management framework.
Citing financial data as an example, management further stated that by the end of the third quarter of 2026, CPIC's net assets had grown 9.3%, compared with 5.6% growth in the first half, indicating a sound level of internal profit accumulation. Through strong asset-liability matching, continuous management of the business structure, comprehensive risk management, and capital discipline, the company can effectively use its internal profitability to continuously and effectively replenish actual capital, thereby providing solid support for its solvency.
Management also pointed out that the insurance segment's contribution to operating profit remains sustained and stable, enabling better internalized capital accumulation. Meanwhile, the property insurance segment's sound combined ratio, together with continued business development, also provides a strong profit contribution to the group, keeping the group's overall solvency in a relatively stable position.
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