China Pacific Insurance poised for stable outlook in the next two years

CPPIC is expected to remain a core subsidiary of CPIC Group.

China Pacific Property Insurance (CPPIC) is expected to report underwriting profits with a combined ratio of 96%-99% over the next two years, despite potential volatility from non-motor business and natural catastrophe risks. The insurer’s strong market position and brand name should support its competitive stance, S&P Global Ratings said.

China Pacific Insurance’s (Group) (CPIC) capital and earnings are deemed satisfactory, despite a strengthened capital buffer under the revised model and the adoption of IFRS 17 accounting standards. 

CPPIC’s capital and earnings are considered fair, with a deficiency at the 99.5% confidence level at the end of the projected period, though its capital buffer has improved due to better recognition of diversification benefits.

The stable outlook indicates CPPIC is expected to remain a core subsidiary of CPIC Group for the next two years.

CPIC Group’s capital and earnings are forecasted to stay satisfactory, with a strong competitive position in China. 

CPIC Group's improved capital buffer under the new model is expected to help it handle market headwinds and business expansion despite low interest rates and capital market volatility. 

CPIC’s net profit dropped 27% year-on-year in 2023 due to market fluctuations and new accounting standards.