- In an earnings statement released to the Shanghai Stock Exchange, China Pacific Insurance (601601.SS/2601.HK) reported a 9% decrease in net profit to RMB 2 billion for the first quarter of 2017.
- The company recorded a 29.9% increase in revenue to RMB 108.4 billion.
- EPS for the first quarter of 2017 was RMB 0.22.
Why It Matters:
- China Pacific Insurance explained that the drop in net profits was primarily due to a substantial increase in Deposit for Duty during the first quarter, which significantly increased the company’s total expenses. Due to a change in policy, the company increased its total Deposit for Duty to RMB 48.735 billion, an increase of RMB 16.665 billion compared with Q1 2016.
- Earlier, the company reported that its total premium income from January 1 to March 31, 2017 was RMB 101.3 billion, up 29.5% compared with Q1 2016. Specifically, premium income from the firm’s life insurance business totalled RMB 74.92 billion, up 43.1%; and premium income from its property insurance business totalled RMB 26.28 billion, an increase of 1.7%.
- At the end of March 2017, China Pacific Insurance’s total assets increased by 6.7% year-on-year and totalled RMB 1.09 trillion. Investment assets totalled RMB 10.01 trillion, rising 6.3% from Q1 2016.; of this, fixed income assets accounted for 81.7%, down 0.6 percentage points compared with the end of 2016.