PICC P&C posts mixed Q1’24 results, eyes stability
Even with a 5% QoQ improvement in investment income, it still saw a 36% YoY decline.
Despite PICC Property and Casualty Co.’s (PICC P&C) earnings miss mainly attributed to weaker-than-expected investment performance, management reaffirmed its commitment to shareholder returns amid near-term volatility, a Jefferies research report said.
PICC P&C reported a 1Q’24 net profit of Rmb5.9b, marking a -38% year-on-year (YoY) decrease but a 13% quarter-on-quarter (QoQ) increase, falling notably short of market expectations.
The combined ratio (CoR) rose by 2.2 percentage points YoY to 97.9%, mainly due to adverse weather during the Chinese New Year.
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Despite a 5% QoQ improvement in investment income, including associates, it still saw a significant 36% YoY decline, impacting profit growth.
Core solvency fell by 1.8 percentage points QoQ to 206.9%.
Key negatives include the increased CoR and underwriting profit decline, partly due to the impact of natural catastrophes.
However, there are positives such as insurance revenue growth (+6% year-on-year, +2% quarter-on-quarter), exceeding market expectations.