China Pacific Property Insurance Co., Ltd. (CPIC), the P&C arm of China Pacific Insurance (Group), released its Q3 2026 solvency report showing a solid capital position and steady operational performance.
Capital Adequacy • Actual capital rose to CNY 80.68 billion, up CNY 0.82 billion from Q2. • Minimum capital increased to CNY 34.34 billion, reflecting higher insurance and market risk charges. • Comprehensive solvency margin ratio stood at 235.0% (-5.0 ppt QoQ); core solvency margin ratio was 195.6% (-1.7 ppt QoQ), comfortably exceeding the 100% regulatory floor. • The National Administration of Financial Regulation (NFRA) maintained CPIC’s integrated risk rating at “AA” for both Q1 and Q2 2026.
Earnings and Underwriting Performance • Q3 net profit reached CNY 0.85 billion; year-to-date (YTD) profit totalled CNY 6.92 billion. • Gross written premiums were CNY 47.20 billion for the quarter and CNY 162.78 billion YTD, up 1.8% YoY. Auto insurance contributed CNY 80.50 billion YTD. • The combined ratio was 97.9% in Q3 and 95.8% YTD; the loss ratio held at 72.2% for the quarter, while the expense ratio was 25.7%. • Investment yield was 0.6% in Q3, lifting the YTD figure to 2.4%; three-year average investment yield and comprehensive investment yield were 3.06% and 4.86% respectively.
Liquidity and Cash Flows • All regulatory liquidity coverage ratios (LCR1 & LCR2 for 3- and 12-month horizons) exceeded 100%; LCR3 remained above 50%, meeting C-ROSS II requirements. • Despite a net cash outflow of CNY 0.62 billion YTD, operating activities generated CNY 10.11 billion of inflows, offset by investment and financing outflows. • Cash and liquidity management instruments accounted for 2.2% of total assets; financing leverage averaged 0.4%.
Risk and Compliance Update • Operational, strategic and reputational risks were assessed as stable with no major incidents reported. • Key initiatives included enhanced disaster-response protocols, an agricultural risk management seminar, and the sixth annual “Risk and Compliance Month.” • The most recent SARMRA assessment (2021) scored 83.94 points, reflecting sound risk-management infrastructure.
Regulatory Actions • Between July and September, 19 branch-level penalties resulted in CNY 6.22 million in fines related chiefly to expense falsification and underwriting irregularities. No penalties were imposed on directors or senior executives, and no judicial proceedings were reported.
Balance Sheet Snapshot (30 Sep 2026) • Total assets: CNY 264.86 billion • Net assets: CNY 72.66 billion • Insurance contract liabilities: CNY 157.95 billion
Outlook and Management Focus CPIC plans to reinforce solvency through business quality controls, asset-liability optimisation and close monitoring of liquidity, while maintaining funding readiness for large claims and dividend payments through year-end.
Comments