China Re expects H1 net profit jump up to 65% 

This comes at the back of improved underwriting profits and optimized asset allocations.

China state-owned reinsurer China Reinsurance (Group) Corporation expects net profit to jump by 55% to 65% for the first half (H1) of 2021.

“Based on the preliminary estimates made by the company, it is estimated that the net profit attributable to the equity shareholders of the parent company of the Group for the first half of the year 2021 may increase by approximately 55% to 65% as compared to the corresponding period for the year 2020,” China Re said in an announcement.

The group attributed the expected increase to the year-on-year (YoY) improvement in the underwriting profits of international business as a result of the optimization of international business structure and the increase in premium rate.

Additionally, the company’s optimization of asset allocation structure to realize gains in a timely manner by seizing opportunities arising from fluctuations in the equity market, resulted in a YoY increase of investment income.

China Re saw a net profit of $380m (CN¥2.46b.) in H1 2020.